Abstract:Energy saving transaction mechanism is a market-oriented energy conservation and emission reduction tool which rose after 21st century. The domestic and foreign academic circles have conducted some theory research and practice study on this mechanism. This article reviews the related research at home and abroad, and focuses on connotation of energy saving transaction mechanism, why this mechanism can be used as a energy conservation and emission reduction tool, concrete practice of energy saving transaction as well as the design and development countermeasures of China’s energy saving transaction mechanism. The purpose of writing this article is stating research status of studies on energy saving transaction mechanism comprehensively and indicating the possible research orientations.