As　the　result　of　climate　change　and　deteriorating　global　environmental　quality,　nations　are　under　pressure　to　reduce　their　emissions　of　greenhouse　gases　per　unit　of　GDP.　China　has　announced　that　it　is　aiming　not　only　to　reduce　carbon　emission　per　unit　of　GDP,　but　also　to　consume　increased　amounts　of　non-fossil　energy.　The　carbon　emission　allowance　is　a　new　type　of　financial　asset　in　each　Chinese　province　and　city　that　also　affects　individual　firms.　This　paper　attempts　to　examine　the　allocative　efficiency　of　carbon　emission　reduction　and　non-fossil　energy　consumption　by　employing　a　zero　sum　gains　data　envelopment　analysis　(ZSG-DEA)　model,　given　the　premise　of　fixed　CO2　emissions　as　well　as　non-fossil　energy　consumption.　In　making　its　forecasts,　the　paper　optimizes　allocative　efficiency　in　2020　using　2010　economic　and　carbon　emission　data　from　30　provinces　and　cities　across　China　as　its　baseline.　An　efficient　allocation　scheme　is　achieved　for　all　the　provinces　and　cities　using　the　ZSG-DEA　model　through　five　iterative　calculations.