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Data shows that in developing countries in Asia, the average price for carbon emission reduction credits is 12 euros per ton; in European trading markets, this price rises to around 20 euros per ton, and it continues to increase. Regarding the size of this entire market, British Prime Minister Brown recently made a bold prediction that by 2030, the total value of the global market for carbon emission reductions will reach 600 billion dollars. According to an analysis by the International Emissions Trading Association in mid-December 2007, the carbon trading market was worth over $70 billion in that year. Analyses suggest that a large portion of this market comes from EU emissions trading activities, with markets in developing countries more than doubling. During the interview, the reporter heard another set of figures: currently, the annual turnover of the global carbon trading market amounts to 30 billion dollars, and the annual amount of emissions reductions sold in the Chinese market accounts for 70% of the global total. An industry insider told reporters, “The official figure is 70%, but I think it would be remarkable to reach 40%.” ” The huge market stems from significant differences in emission reduction costs. According to Japan’s AIM economic model, the marginal cost of reducing 1 ton of carbon dioxide in Japan is $234, $153 per ton of carbon in the United States, and **$198 per ton of carbon in Europe. When Japan aims to reduce greenhouse gas emissions by 6% compared to the 1990 level, it will lose 0.25% of its GDP growth. In developing countries, the average cost of emission reduction is only a few dollars to several dozen dollars; if CDM activities are carried out in China, this cost can be reduced to 20 dollars per ton of carbon. The huge cost difference has prompted developed countries and enterprises to flock to developing countries such as China and India. They provide funding and technology to help developing countries’ enterprises reduce emissions, and the reduced carbon dioxide emissions can be traded as commodities. This is much cheaper than the cost for developed countries’ enterprises to reduce emissions domestically, and it also brings funds and technology to developing countries – so why wouldn’t enterprises take advantage of this? “China’s CDM projects started relatively later than those in India. Around 2006, relatively large-scale capacity building began. However, the development pace is fast and the project scale is large, so companies need time to learn and adapt. ”Professor Liu Deshun, deputy director of the Institute of Global Climate Change at Tsinghua University, said that in terms of the number of projects applied for at the United Nations, China has now surpassed Pakistan to rank second, while its total number of projects is the highest in the world. “Now is the best time for China; its economy is in transition, and traditional high-energy-consuming enterprises are no longer suitable for China’s development. Meanwhile, the international market provides China with an additional incentive to reduce emissions at this time. ”Wu Changhua, Climate Group’s representative for Greater China, is very confident in the CDM as a \"win-win mechanism\". At present, CDM service centers have been established one after another across China, and there are varying reactions to CDM projects in different regions. “The interior provinces are more proactive, as the cost of emission reduction is low there ； The more developed the provinces are, the slower their development tends to be. Rich provinces are not short of money; once they undertake projects, it’s always large-scale projects with comprehensive plans. The coastal provinces are also more proactive due to their access to information. ” Currently, carbon trading is gradually becoming a hot topic in the market, as well as a new concept used by various regions to attract investment. In April this year, the country’s first large-scale carbon trading summit will be held in Shanghai. Not long ago, there were also reports that Beijing is preparing to establish a carbon emission trading exchange. At this moment, dozens more investment banks and carbon funds from countries such as the UK, Germany, Italy, the Netherlands, and Japan have established representative offices in China. It is understood that Morgan Stanley has become one of the leading players in the global markets for energy, greenhouse gas reduction, and carbon credits. Over the next five years, the firm plans to invest $3 billion in carbon emission credits related to greenhouse gas reduction projects and related activities. Traditional banks are also becoming increasingly active in the CDM sector.