CHINA’S top climate official has ruled out any immediate introduction of carbon futures as well as a carbon tax to help the country finance efforts to cut climate-warming greenhouse gases, China News Service reported late Tuesday.

“In the initial stage, we will not do carbon futures, because we are worried that suddenly entering the futures market with no experience could cause chaos in the market,” said Xie Zhenhua, China’s special representative on climate change, speaking at a briefing on the sidelines of climate talks in Bonn.

China has vowed to use “market mechanisms” to help reduce emissions.

Xie said carbon trading must not lose sight of its core purpose of controlling emissions, and should avoid “overinvestment” and the use of too many derivative products.

China has already set up seven pilot regional carbon trading platforms and was due to launch a nationwide exchange this year. Xie said preparations have been completed and the program was awaiting approval from the government.

“[The exchange] will be pushed out once it has received approval,” Shanghai Securities News quoted Xie as saying Tuesday.

China originally planned to launch a nationwide emission trading scheme (ETS) in 2016 after a first phase of trading on seven local pilot projects.

But as part of pledges made ahead of climate negotiations in Paris in 2015, it pledged to launch the nationwide ETS in 2017.

By the end of September, an accumulated total of 197 million tons of carbon dioxide had been traded in the pilot cities with a total value of 4.5 billion yuan (US$677.45 million).

Once launched, China’s ETS is expected to become the world’s biggest, overtaking the European Union’s.

However, government officials and researchers have warned that the program is still facing problems and needs further improvements due to unreliable data and other regulatory problems.

A deputy director at a government think tank told reporters last week that he didn’t expect the trading market to be in full swing until early next year.

China has also considered a pilot carbon futures trading exchange in the southern coastal province of Guangdong, according to previous media reports. China’s securities regulator has also conducted studies into the feasibility of allowing trade in carbon futures contracts. (SD-Agencies)