China is set to launch an online carbon emissions trading system this quarter, speeding up the nation's efforts to curb pollution and help attain its carbon-neutrality goal by 2060.

A full-scale testing would be carried out soon to ensure a smooth opening of trading, Huang Runqiu, the Minister of Ecology and Environment, during a visit to central Hubei province, where the registration system and data for the exchange will be based. Shanghai, home to the bourse, will host trading on Friday and Saturday.

Trading of emission allowances is Beijing’s latest attempt at using capital market tools to help put greenhouse emissions under control. China, the world’s second-largest economy, ranks as the top carbon dioxide emitter globally, surpassing the levels generated by the US and Europe combined.

The trading system will initially include coal or gas-fired power plants, manufacturing facilities with captive power plants and major refineries owned by state-controlled oil giants such as Sinopec and PetroChina.

The government published rules governing carbon emissions trading in January, which took effect on February 1. The launch was plagued by delays due to concerns about accuracy and transparency of emission data.

Guest post from South China Morning Post