The market—guiding mode emphasizes that in market economy more bottom—up market measures should betaken to lead and motivate market entities to save energy， which can free the government from the detailedemission reduction items.This mode includes two systems.
1.Establishing domestic carbon emission exchange market.Under the joint force of the Joint Implementation （JI）， Emissions Trading （ET）， Clean Development Mechanism （ CDM ） in Kyoto Protocol，the global carbon emissions trading market has been initially formed.Though China has become the largestsupplier for carbon emission right， in reality it is the developed countries who dominate the market and havethe pricing power.The financial crisis in 2008 severely slowed down the industrial development of thedeveloped countries， leading to the decrease of their demand.The direct outcome is the risk of shrinking morethan 40 billion RMB carbon asset.Though Doha Conference passed a number of decisions to save Kyoto Protocol， and stipulated that developed countries need to enhance the reduction of emission in 2014 to keepthe international exchange market going， nations such as Canada， Japan， New Zealand and Russia refused totake part in the second term commitment， which undoubtedly will affect the price of the carbon emissionright.From mid—range to long term， there is still a long way to go for the formation of a unified domesticcarbon market.Therefore， China should duly import carbon exchange mechanism for the marketization ofemission rights.
