According to recent reports, China may start charging a carbon tax on the country’s enterprises around 2012 as it plans to reduce greenhouse gas emission and promote energy conservation and environment friendly industries.

While talking to reporters, a senior researcher with the Energy Research Institute under the National Development and Reform Commission, Jiang Kejun said, “We expect China will start to levy various taxes only if they are helpful in mitigating greenhouse emissions and developing a low-carbon economy.”

In the meantime, enterprises like coal, natural gas and oil firms may likely to pay carbon tax in accordance with their carbon dioxide emissions.

On the other hand, energy-saying and environment friendly industries may be subsidized.

Further, talking to media, Jiang said, “In addition, the Chinese government is likely to begin to levy environmental and resources taxes and to greatly boost subsidies to help low-carbon technology research and development.”