China is set to launch its own market for carbon permits in 2016, a Chinese government official said Sunday.

The official said China is almost done complying with the requirements for the future's biggest emissions trading program in the world, according to a New York Times report.

China is responsible for 30 percent of the world's greenhouse gas emissions. The nation plans to utilize the carbon market to keep that number from growing and to help prevent further climate change.

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Beijing launched seven pilot markets ahead of the 2016 carbon trading program. This move is in line with its pledge to decrease its carbon emission to a range from 40 percent to 45 percent below its 2005 levels. China plans to achieve this goal by 2020.

During a Beijing news conference held Sunday, National Development and Reform Commission (NDRC) senior climate official Sun Cuihua said officials would send their reccomendations to the State Council for approval of national market regulations by the end of 2014.

The program will begin in 2016 although some provinces probably would start later, depending on the availability of equipment in each location, Sun said.

As of now, the European emissions trading program is the biggest in the world. However, the Chinese market would easily overtake Europe's once it becomes fully operational.

China's carbon market would serve as the central trading hub in the Asia-Pacific region. New Zealand and Kazakhstan already run similar programs in the same area.

Meanwhile, South Korea begins its own national carbon market at the beginning of 2015. Indonesia, Vietnam and Thailand are also planning to start their own.

The Chinese market will regulate carbon emissions from power generators and other sources. Manufacturers that emit beyond the given cap must purchase permits in the carbon market.

Beijing's seven pilot markets are designed to encourage professional trading firms to increase their liquidity. Recently, Shenzen allowed firms to trade in foreign currencies to facilitate easier transactions for international traders.

TagsThe New York Times, National Development and Reform Commission, Sun Cuihua, Europe, Asia Pacific, new zealand, Kazakhstan, Indonesia, Vietnam, Thailand, carbon market