The rapid growth of Chinese economy has tremendously stimulated the expansion of energy consumption. The structure of energy consumption in China is featured with the coal domination. Air pollution is becoming increasingly severe. As a result, we are confronted with the extremely arduous task to balance energy consumption and environmental protection. In order to coordinate the relationship between energy consumption and environmental protection in a strategic way, this paper analyzes comprehensively the instruments, effects and perspectives of energy-related environmental management. Meanwhile, this paper illustrates the barriers and challenges facing the energy and energy-related environmental management in China, and suggests a priority strategy of management instrument, mainly composed of energy-saving, optimization of energy structure, promulgation of environmental standards, advance in environmental technologies, internalization of environmental costs, establishment of a public benefit fund and adoption of a Renewable Portfolio System. (c) 2007 Elsevier Ltd. All rights reserved.