China and the United Nations are working to set up a carbon trading exchange in Beijing – a move that could establish the Chinese capital as an important centre for the multibillion-dollar global trade in carbon credits, according to the UN’s top official in China.

If successful, the exchange – which would be the first in the developing world – would compete with private sector carbon exchanges established in Europe and the US, and would help to open up further the lucrative Chinese market in carbon credits.