Abstract: Low-carbon economy is a new development model, and it involves many aspects, such as economy, policy, society, technology and environment as well as international cooperation. This article asserts: developing the low-carbon economy is a fundamental way in response to climate change and environmental crisis; properly solving the contradiction between economic development and environmental protection is a fundamental principle of building China’s low-carbon economic development model; creating an innovative institutional system is the key for building the low-carbon economic development model; at present, it should be particularly emphasized to fully play leading roles of the government and economic policies in guidance of low-carbon economy development.