This paper discusses the specific features of the energy in China, and addresses those key challenges in China is that the coexist of (1) higher total energy production and lower per capita level; (2) lower per capita energy resources level with unrational energy consumption structure; (3) lower energy utilization efficiency and higher energy conservation potential; and (4) unequal distribution of energy resources. It reviews the key environmental problems related to the feature of energy production and consumption. Based on the analysis, the author furthers addresses the policy and actions needed.