Just days after Barack Obama's transition team signalled that the creation of a US carbon cap-and-trade scheme would be an early priority for the new administration, the global carbon market received another boost after Chinese officials said the government will establish a nationwide carbon trading scheme. According to reports in the South China Morning Post, the State Forestry Administration said yesterday that the central government will enforce a compulsory carbon trading scheme across the country's provinces as part of its strategy to create a 'low carbon civilisation'.

Meanwhile, the People's Daily Online quoted an official at the Chinese Academy of Sciences who said that the new scheme would aim to ensure that carbon emissions are treated as a 'scarce resource'.

He added that provinces that invest in carbon capture systems for example, would be able to earn money from those regions that fail to invest in the technology.