In December 1997, 149 countries and area hold the conference of the parties to the United Nations Framework Convention on Climate Change. The Kyoto protocol is produced at the conference in order to achieve stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. The Kyoto Protocol establishes legally binding commitments for developed countries to reduce their collective GHG emissions by 5.2% Kyoto includes defined flexible mechanisms such as Emissions Trading, the Clean Development Mechanism and Joint Implementation to allow industrialized economies to meet their GHG emission limitations by purchasing GHG reduction credits from developing countries .This protocol not only takes the international responsibilities but also makes new business for developing countries.             

China has become the second large energy producing and consuming country. Every year, the energy consumption accounts for one tenth of the global energy consumption. (In 2004, 1.845 billion tons of coal equivalents were produced and the gross amount of energy consumption is 1.9 billion tons of coal equivalents.) Since the reform and opening up, coals has been accounted for 70 % of energy production and consumption. GHG emission reduction plays a significant role in the development of such a coal consumption country.  Yearly C02 emission has surpassed 3 billion tons. Recently,   research reports of APEC pointed out that although China economy has been in steady growth, the GHG emission of China will account for 22.3% of all which surpasses USA to become NO.1 in the world. China is developing country which takes responsibility to the world. Undoubtedly, GHG emission reduction is one of these important responsibilities. Participation in the CDM project will bring new challenges and chances to china’s development.

Building energy consumption accounts more and more of the whole energy consumption. At present, there are 40 billion square meters of buildings in China. Every year 1.6to 2 billion square meters of constructions are built which surpass the general building area of all of the developed countries. However, 97% of these buildings are of high energy consumption. It is estimated that the new built area will be 30 billion square meters by 2020 year. In 2001, the building energy consumption equals to the energy of 376 million tons of coal equivalent, which accounts for 27.6 % of general energy consumption. In 2003 the buildings consumed energy of 15.62 million tons of coal equivalent (including heating and cooling energy of buildings consumption are 11 million tons of coal equivalent), accounts for 33.2% of 47 million tons of coal equivalent of the gross energy consumption. The percentage of building energy consumption is reaching 35% of the global average level with the development of economy and rapid increase of the building area.  

Excluded the energy consumption of building material production, building operational energy consumption has already accounted for 60% and the traditional energy source used is coal. It is important to reduce the GHG emissions by the alternative energy sources of heating coal accounted 15-20% of the gross energy consumption. Geothermal energy heating pump system utilizes the shallow geothermal energy. In this way, the system not only guarantees the indoors normal temperature (18-24 degrees in winter, 25-27 degrees in summer) and utilization rate as high as 60%，　but also makes zero pollution in these areas. Speculated by experts, geothermal energy heating pump system will save energy of 14 billion tons of coal every quarter of year excluded system electricity consumption every ten thousand square meters. CO2 emission will be reduced as much as 36 billion tons. Therefore geothermal energy heating and cooling system is the most effective and reasonable choices to reduce GHG ruled by Kyoto Protocol.