Abstract: This paper first estimates the quantity of CO2 emissions in 28 provinces of China covering the years from 1990 to 2008, then uses the panel data to investigate the impact of FDI on China's CO2 emissions under the frameworks of both static and dynamic panel data model．The main findings are as follows: (1)FDI has a significant positive impact on CO2 emissions, which means that FDI increases China's CO2 emissions through the scale effect.(2)The environmental effect of FDI displays structural differences in the aspect of time and space. Since accession to the WTO for 10 years, the negative effect of FDI on environment has become stronger compared to the earlier ten years. Relative to inland areas, the negative impact of coastal areas' FDI on environment is stronger.(3) The per capita GDP is the largest driving factor contributing to CO2emissions, followed by FDI. Industrialization and urbanization of China also have certain positive effect on CO2 emissions. This paper confirms the robustness of the estimation results by eliminating abnormal samples, using external instrumental variable and lagged explanatory variable.