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“Carbon dioxide, when handled properly, is a commodity; when not handled properly, it becomes a problem. ”Wu Changhua said that CDM still has many limitations in China: complicated procedures, the inability to determine baseline levels which in turn makes it impossible to identify carbon credits that can be traded, and a lack of appropriate methodologies, among other issues. At present, many industries in our country have not yet entered the CDM sector. “This is the biggest obstacle we face. For example, biogas digesters – those used in rural areas. Each household uses a small-scale digester, but when combined they constitute large-scale projects; however, due to technical issues, we are not yet able to utilize them. China has actually made many contributions – why not mention them? The attitude now is more open than before. ” In 2012, the Kyoto Protocol expired, adding some uncertainty to the prospects of CDM projects. “The biggest focus in 2012 was whether China and India would commit to emission reductions. Although there are many shortcomings in CDM projects, they have now begun to reap benefits, so the entire mechanism is not likely to change significantly. After 2012, there will be a timeline for achieving these goals, and I believe that by 2020 China will be a leader in this field. ”Wu Changhua said. Carbon dioxide emission reduction credits can also be traded, with transaction values reaching hundreds of billions of dollars! Currently, a series of such mysterious international transactions are taking place between Chinese companies and companies in developed **countries. 2008 was the first year of the commitment period under the Kyoto Protocol. **The greenhouse gas emission levels of the contracting parties (mainly developed countries**) will be reduced by 5.2% compared to 1990 levels over the next 5 years. However, developed countries face high costs for emission reduction, and forced emission cuts will affect the GDP growth of these countries. Therefore, based on the Clean Development Mechanism under the Kyoto Protocol (abbreviated as CDM in English), purchasing carbon emission reduction credits in developing countries has become an option for many European companies. According to Wu Changhua, the head of Climate Group Greater China, this makes carbon dioxide a tradable commodity in a legal sense. According to an analysis by the International Emissions Trading Association in mid-December 2007, the carbon trading market was worth over $70 billion in 2007. China, on the other hand, accounted for over 40% of the market share that year. Recently, reporters traveled to Beijing, Hunan and other places to take readers into this unfamiliar field of international trade that is carbon trading, and to uncover the underlying concerns behind foreign investment banks’ interest in China’s carbon trading market.