Last week, China’s National Development and Reform Commission reportedly directed seven regions to set overall emissions control targets and submit proposals for how caps should be allocated. The directive, which encompasses the cities of Beijing, Chongqing, Shanghai, Shenzhen and Tianjin and the provinces of Guangdong and Hubei, aims to establish cap-and-trade pilot projects for the country’s carbon market, meant to be in place by 2015.

The Chinese government had signaled at the COP17 climate negotiations in South Africa last December that it could adopt a more ambitious emissions reduction policy by 2015 and 2020. As part of the Copenhagen Accord, it had already committed to reducing carbon emissions intensity by 40-45 percent between 2005 and 2020.

That (albeit non-binding)