China is the world’s largest carbon emitter. To begin to tackle the negative impact of excessive carbon emissions, China announced the establishment of its national carbon market in December 2017. With this announcement, it became the largest carbon pricing initiative in the world, surpassing the EU and U.S. carbon markets. However, China has a number of challenges ahead in establishing a full-blown and fully-operational carbon trading system as well as using market based solutions in the war against pollution.;xNLx; ;xNLx;Over the next few years, China plans to seek solutions to the challenges including collection of adequate data, development of a regulatory framework, and creation of a futures trading market for carbon. In the interest of reducing carbon emissions, it is important that China succeeds.;xNLx; ;xNLx;The carbon market timeline below is a tool to track the continued evolution of China’s carbon market. It provides a quick snapshot of important carbon market developments and carbon financing innovations;xNLx;