Emissions trading is often get criticized for not promoting technological innovations. This attempt by EU could be a partial answer to that call and is very interesting. WWF Japan also examined this kind of system back in 2007 but it didn't get much support...
Although the news of China testing some caps (?) in certain sectors is intriguing, this article is highly confusing. It cannot logically be the reason for EU to continue to allow CERs from China because of this from the first place.