Fiscal policies and emissions trading are two types of market-based policy instruments that are most widely used worldwide to control GHG emissions. At present, most of countries choose one of them as their main policy instrument to control GHG emissions andconsider that the two instruments are incompatible with eachother. Fiscal policies, compared to emissions trading, have broader social and economic impacts and are therefore more politically constrained, making the design more complicated. Fiscal policies play a very important role in the UK's GHG emissions control policy package and has made significant emission reduction contributions. Furthermore, they have been implemented in parallel with emissions trading through flexible while complex coordination mechanisms. As the UK's policy practice shows, fiscal policies and emission tradingcan not only be implemented together but also complement each other. This paper focuses on the characteristics of the UK's fiscal policieson GHG emissions control, including Climate Change Levy, Carbon Price Support and Climate Change Agreement, the main consideration in the design of these policies and the fundamental approaches coordinating the fiscal policies and emission trading. By considering the actual impacts of each and every single policy in designing the coordination mechanisms between fiscal policies and emission trading, the UK has succeeded in avoiding significant impact on the economy of a single policy and in reducing the political pressure facing fiscal policies. In addition, a series of flexible mechanisms has been incorporated into the UK's fiscal policy package so as to balance the political pressure andthe policy effect and allow more flexibilities to the government and regulated enterprises. All these have helped to facilitate the acceptance by all major stakeholders of the policy package. The policy practice in the UK could provide a very useful reference for China and other countries which are considering to take fiscal policies or emission trading to control GHG emissions.