Its own carbon trading market will be set up during the “Twelfth Five-Year Plan”in China. But at the moment this market is faced with the major challenge：Development delaying of carbon market；Lacking of international discourse；Imbalance of regional carbon market；Lacking of national carbon market；Target of carbon dioxide reduction cannot be resolution；Carbon trading system have not been established. Main problems of carbon trading are existing in China：Having no perfect laws and regulations；Inadequate of regulatory regimes；Carbon trading is non-standardized；Difficulty of declining in transaction costs；Shortage of talent and intermediaries；The market having no more real exchange. This mechanism of imperfect on carbon trading market lies in：Having no defined carbon emission rights； The trading lacking legal basis；The original allocation of carbon emission right being difficult in reflecting fairness and efficiency；Lacking of carbon monitoring and reporting system leaded to inadequate control；Lacking of institutional cohesion and institutional support on the carbon trading system. Therefore only on the basis of firstly analyzing the inherent mechanism and mechanisms，then really solving the above problems in establishing the carbon trading market，the establishment and functioning of the whole market will be more effective and safe.