Abstract: Under the current unclear situation of global carbon market and the start-up of the voluntary emission reduction market, and facing the opportunities of setting up domestic energy-saving and emission reduction targets and the implementation of eco-compensation mechanism, this paper introduces the international carbon market situation, and concludes the potential project types of agricultural greenhouse gas (GHG) reduction and trading. And then discusses how China could actively explore the utilization of market base instrument in the agricultural GHG reduction while getting over the difficulties like small amount of unit reduction, high transaction cost, lack of methodologies and third party verifier, as well as the challenge of no unified standard of domestic trading platform.