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The problem of global climate change has become one of the hottest issues in the new century. All the people over the world are doing their best to keep the temperature down and guaranty human’s survival. After a long journey of negotiation and practice, the EU established the greenhouse gas emission trading scheme ETS first, and became the pioneer to reduce the greenhouse gas. As a big developing country, China had promised to take control the emission of greenhouse gas. Standing on this angle, this paper mainly analyzes the EU-ETS, and makes advice about establishing our own emission trading market.This paper is composed of preface, text and conclusion, totally six chapters.The first chapter introduces the background and research purpose. It summarizes the relative research achievement home and abroad, and analyzes the situation of global climate change and the influence.The second chapter introduces the basic theories relative to the EU-ETS in brief, including the theory of sustainable development, the Externality theory, proprietary theory, Coase theorem, and so on.The third chapter analyzes the structure and contents of EU-ETS in detail, especially the part of allowance allocation and open structure.The forth chapter points out the great achievement of EU-ETS, its deficiency, and the suspicion it faces.The fifth chapter elaborates the present condition of domestic emission trading market and analyzes its problems.The last chapter is the conclusion. From the angle of reference, this paper makes some advices about establishing our own emission trading scheme, including the laws, the trading target, the allowance allocation, the principle of Common but Differentiated Responsibilities, supervisory institutions and so on.
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