China, as the biggest GHG emitter and the largest developing country, has been urged by international society to take responsibilities for reducing GHG, especially in the post-Kyoto commitment period. Currently, the United Nations Framework Convention on Climate Change (UNFCCC) assigns the responsibility to parties who produce the pollution, using the production-based GHG emissions inventories. In this article, we analyze the difference between China's production- and consumption-based emission inventories and conclude that consumption-based GHG emission inventories are preferred; as it is fair that whoever consumes the emission should pay for their consumption. In addition, in order to consider environmental justice, policy-makers should take both economic and administrative measures to support poor provinces for reducing CO₂ emissions.