Carbon emission right trading market system (hereafter: emission right system ElRS) is a mechanism to control anthropologic and human caused global warming. ERS is also known as emissiontrading schemeETS) which is a cap and trading system that creates an emission price and allows organisations to achieve carbon reduction at a lowest cost. The purpose of the paper is to discuss the role ofcarbon accounting for emission control of entities that participate in ERS and for the development of ERS in China. The paper contends that carbon accounting can help mangers formulate and implement appropriate climate policy and improve the quality of carbon management system (CMS) so as to enhance energy efficiency, and the emission reduction targets can be more effectively achieved. In addition, carbon accounting can facilitate the development of ERS by improving the transparency and reliability of carbon accounting disclosure and GHG statement assurance. The paper indicates carbon accounting should utilise both financial and management accounting elements and proposes new and creative approaches to develop carbon accounting framework,methodology and workable programs. Climate change is a verycomplex phenomenon and affects many aspects of organisations. The paper concludes that carbon accounting is in its early stage and elaborates future research opportunities.