China is the world's second largest carbon trading market following the EU, according to data released on June 10.

Xie Zhenhua, Vice Minister of the National Development and Reform Commission, said that Chinese enterprises had traded over 3.85 million tons of carbon emission quotas as of May 23.

These quotas were sold for 125 million yuan ($20.09 million).

China began pilot carbon trading in 2011 and has approved seven regional trading schemes.

Under the schemes, enterprises that produce more than their allotted allowance of emissions, are allowed to purchase unused allowances on the market from those that cause less pollution. Similarly, those who emit less than their allowance can profit by selling their unused allowance.

Carbon trading is designed to simultaneously discourage emissions and raise money to fund research on environmental protection.

In an action plan released last month, China aims to cut carbon dioxide consumption per unit of economic output by 4 percent in 2014.