Few discussions about tackling climate change last very long before the conversation turns to the topic of China.

For many observers, China and a resurgent Asia represent global warming's greatest challenge. An almost irresolvable problem whereby any emission cuts delivered in the west are negated by the near mythical coal fired power stations that China is said to be opening every fortnight.

And yet despite Asia's chronic environmental problems and soaring carbon emissions the region could still represent the crucible in which many of the solutions for tackling climate change are forged.

That is certainly the view of brand consultant Rick Seireeni who argued this week that Asia boasts many of the economic, social, political and cultural characteristics required to deliver a genuinely low-carbon economy. Moreover, China's position as the world's factory may mean that it is now the planet's biggest polluter, but it also means that it is uniquely influential. Any environmental gains made in China will filter around the whole globe faster than you can say imports/exports.

There are also encouraging signs that China is willing to wield this influence. The government is reportedly poised to boost the authority of its environmental watchdog - something Gordon Brown could learn from on his trip to China this week given the appalling environmental performance of his own civil service – while Hong Kong is looks set to tap its potential as a global carbon trading hub with the proposed launch of a new carbon exchange.

However, despite China's progress Europe looks set to cement its position as the global leader in the push to develop a low carbon economy next week when it announces plans to give its various environmental policies a much needed overhaul.

Politicians aren't exactly renowned for admitting to their mistakes, but Brussels looks set to deliver an at least tacit admission of its various failures with plans to significantly tighten the European emissions trading scheme (ETS), introduce targets for renewable energy and proposals for a ban on imports of unsustainable biofuels.

Encouragingly, there also seems to be a consensus building that these moves can work with the attempt to crack down on biofuels falling into line with recommendations made in a recent Royal Society report on the environmental risks posed by biofuel and new research suggesting the ETS will cut emissions while not crippling European industry.

Whether these stringent measures make it onto the statute book in a world where many people won't install green technologies because they think their ugly and popular opinion on green issues appears to be polarising remains to be seen. But either way next week's announcements will certainly point out the direction legislators are heading in.

Right, I'm off for a Friday night drink – from a lightweight bottle of course.

Have a good weekend,

James