Abstract: Integrating normative analysis with positive analysis methods, it was elaborated that the trade projects of forest carbon sequestration were still in the initial stages according to the characteristics of forest carbon sequestration. The public goods properties of forest carbon sequestration and its externality characters were expounded. Taking the experimental project in Tengchong County, Yunnan Province as a case study, the characteristics of the project and the existing related problems were analyzed, some suggestions were proposed for the government to play the active roles in the implementation process of the project.