Abstract: Achieving carbon peak and carbon neutrality is a systematic project involving the transformation of production mode and lifestyle. The mechanism of low-carbon consumption could be explored by focusing on the areas of public life such as clothing, food, housing, transportation and use. Low carbon consumption can help achieve carbon peak through "direct carbon reduction mechanism" or "indirect carbon reduction mechanism" that forces low carbon production, and promote carbon neutralization process through "protection mechanism" from both artificial and natural means. Based on the demand utility theory, externality theory, consumer behavior theory, the low carbon consumption is the result of multiple psychological motivation, influenced by many factors. Therefore, both rigid regulation and soft policy guidance are needed to eliminate cognitive bias of low-carbon consumption and solve the externalities of low-carbon consumption. Summarizing China's low-carbon consumption policy since the "11th Five Year Plan" period, in view of the low public participation and imperfect low-carbon consumption market, the promotion policies of low-carbon consumption can be further improved from the aspects of participants, product specifications, market cultivation, publicity, and consumption scenes during the "14th Five Year Plan" period.