Abstract: Carbon market mechanism is an effective way to realize the value of blue carbon and blue carbon ecosystem, which is important to play the role of blue carbon ecosystem in coping with climate change. In this paper, we overview the opportunity and progress of blue carbon projects (BCPs) and propose advice on facilitating the development of BCPs in the current carbon market according to the problems faced by the BCP development in China. Currently, methodologies have been approved under Clean Development Mechanism (CDM) and Verified Carbon Standard (VCS) for BCP, and numerous BCPs have been developed worldwide verified by CDM, VCS and Plan Vivo Standard. In 2021, China has successfully developed and traded the first BCP, “Zhanjiang mangrove afforestation project”, and will continuously facilitate the development of BCPs. However, many challenges still exist and limit the administrative ability to promote implementation of more BCPs. For example, the BCPs usually have comparatively small scale and face uncertainties in approval of additionality. Moreover, as owners of emission reduction credits and major entities on the trading market, the management agencies of blue carbon resources are limited in disposal of financial benefits from carbon trading. Therefore, we recommend a favorable environment for BCP development, and emphasize the role of the market mechanism in resource allocation and the guiding role of the government to promote the development of blue carbon market of China. In addition, to attract more funds from the private sectors to participate in protection and restoration of blue carbon ecosystems, to encourage them to invest or purchase carbon credits and to broaden the investment sources for protection and restoration activities are also important in the development of blue carbon market of China.