The Chinese government announced on Friday that it eyes to launch a national emission trading system in two years' time.
According to the presidential announcement jointly issued by China and the United States, where the carbon trading scheme was a part of, the system will implement a "green dispatch" paradigm to favor low-carbon sources.
The new system will also cover key industrial sectors such as cement, steel and power generation.
Though trials in seven areas have commenced in 2011, experts said that the establishment of a carbon trading market and the creation of greenhouse gas emissions price will become a national-level strategy.
The move comes as part of the highlight of China-U.S. ties as the two nations are regarded as the largest emitters in the world.
National Resources Defense Council's senior adviser on climate change, energy and environment Yang Fuqiang said that climate change has been a significant point of discussion between China and the U.S., citing that there is indeed a need to work more closely for the welfare of both.
Back in November last year, when U.S. President Barack Obama made his state visit in Beijing, China has already vowed to cap carbon dioxide emission by 2030 or earlier.
Apart from the carbon trading system, China and the U.S. are also developing standards on heavy-duty vehicle fuel efficiency anew. These are planned to be finalized in 2016 and be implemented in 2019.
Both nations are also intensifying their efforts to phase down "super polluting" hydrofluorocarbons.
Aiding the international community, the two countries furthermore announced their efforts to help accelerate the transition to low-carbon development while reaffirming their commitment to federal- and subnational-level bilateral cooperation.
For China's part, President Xi Jinping said that the government will dole out 20 billion yuan as financial assistance to the developing economies' combat against climate change.