Abstract:Since the 1980s,with the rapid development of China’s economy and the increases of the environmental protection investment,and with the publicity of a series of policies and measures for encouraging the development of environmental protection industry,especially with the implementation of the market-oriented reform for city public utilities,China’s environmental industry has made rapid development and achieved preliminary scale. In the meantime,it is also clearly realized that in the present period,the industrialization and urbanization in China have not been completed yet,the pollution control task is still very heavy,and the development of China’s environmental protection industry is facing unprecedented challenges and opportunities. This paper reviews the development process of China’s environmental protection industry,analyses the current situation and existing development obstacles,and proposes pertinent policy suggestions on promoting the innovation development of China’s environmental industry.