China’s forthcoming carbon trading pilot scheme could dovetail with other global platforms, paving the way for a global climate change agreement coming into force in 2020, according to a new report launched today.

Australian research organisation The Climate Institute yesterday unveiled a report prepared by project developer Climate Bridge examining the potential impact of China’s future emissions trading scheme.

The world’s biggest producer of carbon dioxide (CO2) is to launch seven pilot emissions trading schemes in cities and provinces from 2013, covering 700 million tonnes of CO2 equivalent.

The pilots will create the second-largest emissions trading scheme in the world after the European Union Emissions Trading System (EU ETS), and are expected to lead to a nationwide system in 2015-2016 that would be the largest in the world.

The Climate Institute report argues that the launch of the Chinese national scheme would complement the launch of other major schemes, acting as a catalyst for success at global climate change negotiations that year.

South Korea and Australia are due to launch platforms in 2015 and the report predicts that China’s scheme could prompt other emerging economies, such as India, to follow suit.

The United Nations Framework Convention on Climate Change (UNFCCC) is hoping to conclude negotiations on a global agreement by 2015, which would come into force by 2020.

The report maintains China could have a stronger negotiating position at this time, as a result of its own action on climate change. It also predicts that China’s emissions trading system could link with other global schemes, after 2020.

Alex Wyatt, chief executive Climate Bridge, said it showed that China should no longer be perceived as “a laggard” on climate action.

“China’s pilot emissions trading schemes will cover nearly twice the emissions of Australia’s scheme in 2014,” he said. “Business and politicians that assume inaction from China are taking a huge gamble on a high carbon status quo.”

The two organisations also released an interactive map aiming to give an overview of the climate policies around the globe.

John O’Conner, chief executive of The Climate Institute, urged Australia to increase its ambition on cutting emissions.

“This map very clearly shows that there is significant if as yet insufficient action on climate change and clean energy policies around the world,” he said.

“If we are fair dinkum about doing our fair share, this shows that Australia must ready itself for stronger emissions reductions than the five per cent 2020 target that is based on a world of inaction.”