Abstract: The green certificate trading mechanism is an effective way to transfer the externality costs of the thermal power generation to the positive external compensation of the renewable energy power generation. To control the pollutants impact brought by coal-fired power generation,China has established a pollutant discharge standard.In this research, the pollutant discharge fee levied, the green certificate trading mechanism, and the fiscal gap created by the operation of the renewable energy development fund are combined together to form an external transfer mechanism.By introducing the external transfer mechanism, the renewable energy development fund gap was found to be effectively filled.The case study is carried out based on the unit operation data a specific area in North China, and the analysis of the economic and environmental benefits confirms the validity of the designed mechanism.