Carbon insurance,low-carbon insurance,green insurance,climate insurance and other confusing words on above insurance is not the same concept. Carbon insurance is based onUnited Nations Framework Convention on climate changeandKyoto Protocol. It is the two international treaties that is the premise of carbon insurance,which exist ether in the carbon emission be ruled by the two treaties or the carbon financial activity when non-Kyoto rules simulate Kyoto rules. Carbon-based financial market is artificially designed and produced,which contains huge non-traditional risks. The current insurance legal system centering on Insurance Law of the Peoples Republic of Chinahave many difficulties in face of carbon financial risks,such as carbon delivery and carbon financing. According to ourInsurance Law,which is based on traditional risk,the risks of carbon-based financial market are uninsurable risks mostly. The value of the subject in the carbon insurance contract is difficult to determine. Our current carbon insurance system did not protect carbon financing and carbon delivery and does not cover some unique risks,and lack of the guiding role of ecological value in the existingInsurance Law. There are no beneficiary in our property insurance contract law. In response to these difficulties,we should construct carbon insurance legal system including the introduction of ART principle and using of fixed value insurance contract,construct ournon-Kyoto rulescarbon trading market,in which the carbon insurance should play good functions,guide the technical content in CDM by carbon insurance,and integrate ecological values. Besides,beneficiary should be privy in carbon insurance contract. Regarding to the legislative mode,carbon insurance should be separated from other insurance for special legislative treatment. And we can add an article inInsurance Law of the Peoples Republic of Chinathat carbon insurance shall be separately prescribed by the laws,administrative rules and regulations.