New York - At the 2nd US-China Low Carbon Economy Conference held in New York on Monday, experts said they believe China will be successful in moving towards a low carbon economy.

The annual event gathered key speakers from NYSE Blue, BlueNext, China Beijing Environment Exchange and other energy experts to talk about how the US and China can work together to reduce emissions globally.

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Brian Storms, chairman and CEO of NYSE Blue, said China will have a tremendous progress in emissions reduction in the next 12 to 18 months.

Nevertheless, there will be a lot of work ahead for China, said Wu Changhua, Greater China director of the Climate Group.

"In its next five-year plan, China wants to transform its economic structure. It has sent a clear signal during the Cancun talks that its government and people are ready to go into a low carbon economy. Low carbon is already infused in its young generation," said Wu.

Ivan Zelenko, head of derivatives and structural finance of World Bank, commended on China's 12th five-year plan to develop carbon market and impose carbon tax.

China is trying to set market mechanism to encourage polluters to slow their growth of carbon-dioxide emissions. Companies will be asked to reduce carbon emissions per yuan of profit earned, rather than providing them with hard targets.

The government could levy a carbon tax on enterprises and further boost prices of fossil fuel for the next five years as an incentive to cut greenhouse gas emissions and help realize green targets, according to an earlier report in China Daily.

Emilie Mazzacurati, head of carbon research North America of point carbon, said she believe carbon tax will be the most efficient way to curb emissions.

"China is going to build a market mechanism for carbon. Market mechanism will be more effective than shutting down the power plants. China has shown its commitment to reducing emissions," said Mazzacurati.

"But in the US, it will not happen in the next two years, not at the federal level. There's little interest in the carbon tax. But I believe carbon market mechanism will be the way for China and the US eventually."

Experts do not see a rosy outlook in US emissions reduction till 2013.

California will launch a carbon market in 2012 but growth will be slow as the financial crisis has already pushed emissions down, according to Reuters.

"We need a legislation to deal with climate change. Nevertheless, I believe the US will keep its 2020 commitment," said Chelsea Henderson Maxwell, former senior advisor on energy and climate change to Senator John Warner.

This year, the US Congress failed to pass a climate bill which would have included new limits on carbon dioxide pollution from factories, utilities and vehicles, as well as a goal to cut US carbon emissions 17 percent by 2020 from 2005 levels.

The US promise of a 17 percent reduction was met with criticism from many countries who noted that it amounts only to a 4 percent cut from the benchmark 1990 pollution level used by most countries.

It is unlikely that any firm cap on US emissions will become law in the next two years either, experts say.

Milo Sjardin, Head of Analysis of North America Bloomberg New Energy Finance, said the US will not meet its goal of 17 percent emissions reduction by 2020 although its emissions will be reduced.

"Like other countries, the US is reducing emissions independently. On a domestic level, every country is doing something, but that's not enough," said Sjardin.

He believed that over time, the US and China will be pushed to work together in tackling the climate change.

Wang Yao agreed that China and the US, as the two largest economies, should cooperate with each other to reduce emissions.

"Carbon trade is something China is considering right now although the carbon tax will not happen right away. We need to think about how to design the carbon market mechanism," said Wang.