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China, characterized by the world's largest population, is one of the most rapidly growing countries and the second largest energy consumer, just behind the United States, in the world. Its annual GDP growth rate recorded about 10% during the last two decades, and the primary energy consumption in the recent past is more than 875 Mtoe, equivalent to a fifth of the OECD and a tenth of the world total, respectively. At the same time, China is also one of the worst polluters with the largest SO2 emissions and the second largest CO2 emissions. Because of its huge potential impact, the study of China's related environmental issues like Biofuel, Afforestation, clean development mechanism and climate change is vital not only for China itself but also for the rest of the world. There is great interest in learning more about environmental issues in China, but it is not easy to obtain accurate, relevant information because the issues are diverse and are complex phenomena resulting from the interconnections among natural resource constraints and political, social, and institutional systems.