China will launch two new pilot carbon trading schemes this week in Beijing and Shanghai as it strives to cut soaring rates of greenhouse gas, reduce choking smog and determine the best system for a nationwide roll-out. China has pledged to cut the 2005 rate of CO ₂ emissions per unit of GDP growth by 40 -45 percent by 2020. As UN-led climate talks stumbled in Warsaw last week, the country's chief negotiator Xie Zhenhua was keen to push the country's CO ₂ cutting credentials, challenging developed nations to match the efforts being made by China to tackle global warming. The new platforms, which will force industrial firms to buy credits to cover any CO ₂ they emit above allocated quotas, also underscore Beijing's commitment to " market mechanisms" to slow emissions growth, in line with an ambitious raft of reforms outlined earlier this month. Trading is likely to start slowly as the government treads cautiously and tries to learn lessons from Europe, where an excess of credits has left carbon prices in the doldrums.(170 words)