China and the European Union (EU) will launch a new joint cooperation project on emissions trading on Tuesday, the latest effort for the two economies to reduce greenhouse gas emissions.

The EU will contribute 5 million euros ($6.86 million) to the three-year project. The project will contribute to the development of China's emissions trading systems, including emissions cap setting, allocation of emissions allowances to greenhouse gas emitters, development of key market oversight structures, and the monitoring, reporting, verification, and accreditation process, the EU said in a statement received by the Global Times on Monday.

China has so far launched a pilot program of carbon trading in seven provinces and cities including Beijing and Shanghai and South China's Guangdong Province.