In the context of global climate change, the internalization of negative externality, which is brought about by the traditional mode of economic growth, has become an inevitable choice. In order to achieve the internalization, it is necessary to make innovations on the market mechanism and system, find the value of environmental capital, establish a new mode of economic growth based on environmental capital, and then transform the environ- mental capital, an exogenous factor of economic growth, into an endogenous factor. Of this, the key of market mechanism and sys- tem innovation is the financial innovation that is based on environmental capital and negative externality; the government defines the initial property right of environmental resources and establishes environment energy trading market, so as to guide enterprises to trade environmental resources （represented by carbon emission permit trading） based on the Clean Development Mechanism, and to vigorously develop environmental finance and carbon finance.