Abstract: In order to reduce carbon emissions in the process of pulverized coal production, distribution and combustion, the design problem of pulverized coal logi stics network consisting of a pulverized coal plant, some heat source plants and distribution centers is considered based on carbon trading mechanism in this paper. Fir stly, targeting at the maximum of heat source plants' profit, the model is formulated to obtain heat source plants' optimal decisions which contain its' pulverized coal ord er quantity and carbon reduction quantity. Secondly, in light of the decisions made by heat source plants, taking the carbon trading and environmental protection invest ment into account, the integer programming model is established, which targets at the maximum of pulverized coal plant's profit. Then distribution centers' location and the carbon reduction quantity of pulverized coal plant are obtained by means of Lagrangian Relaxation Algorithm. Finally, through the analysis of experimental data, we verifie the feasibility and validity of the proposed model.