At present, the operating mechanism of the carbon market has the following two forms. Quota trading is controlled and restricted by relevant institutions, and countries, enterprises or organizations with emission reduction targets are included in the market. Under the system of total control and quota trading, managers set and allocate emission quotas to participants, and combine environmental performance and flexibility through market-oriented trading means, so that participants can meet compliance requirements at the lowest possible cost. Project-based transaction is through project cooperation, the buyer provides financial support to the seller and obtains greenhouse gas emission reduction quota. Due to the high cost of emission reduction in developed countries, the average cost of emission reduction in developing countries is low. Therefore, developed countries provide funds, technology and equipment to help enterprises in developing countries or countries with economies in transition reduce emissions, and the generated emission reduction quotas must be sold to helpers, and these quotas can be further traded in the market.

The European Union Emissions Trading System (EUETS) introduced carbon emissions futures and options trading in April 2005, and carbon trading was interpreted as financial derivatives. In February 2008, BLUENEXT, the world's first carbon emission trading platform, was put into operation, and then the futures market was launched. Other major carbon trading markets, including the UK Emissions Trading System (UKETS) in the UK, the Australian National Trust (NSW) in Australia and the Chicago Climate Exchange (CCX) in the US, have also achieved relatively rapid expansion. Canada, Singapore and Tokyo have also established trading mechanisms for carbon dioxide emission rights.