Climate change, ecosystem degradation, desertification, deforestation, the impacts of pollution on human health, the growing resource scarcity, as well as concerns about food, energy and water security are current challenges facing China. As these environmental and social issues, arising along with the rapid economic development and urbanization, are of more and more concern, and afterthe formation of market economy, the Chinese government has decided to rely more on economic policy to promote the low carbon green growth.

This paper offers an overview of the current endeavors in this trend in China, identifies opportunities, barriers and challenges of taxation reform for environmental concerns, discusses the potential roles in promoting low carbon green growth, and provides general recommendation for the design and implementation framework for environmental taxation reform.