A Mercuria Energy Group subsidiary has formed a joint venture with Hong-Kong listed China Datang Corp. Renewable Power Co. , focusing on renewable energy and carbon credits, energy trading house Mercuria said on its website.

The new company is called DTM Energy Technology Development Ltd and was registered in Beijing, China, last month.

The new company will be equipped to reach the top position in the growing Chinese carbon market as well as explore international emissions market opportunities, Mercuria said.

In the meantime, both parties will seek to develop their reach in overseas traditional energy and renewable energy markets, it added.

China is studying an absolute carbon dioxide cap for certain regions, which would be the first step towards setting up a national emissions trading scheme.