Abstract: This study conducts a comprehensive analysis of international best practices in integrating nuclear power into market-based policy instruments for low-carbon transition, complemented by an examination of China’s experience in realizing carbon reduction benefits from clean energy deployment. Building upon this foundation, the research introduces an innovative concept of Green Nuclear Power Certificate (GNPC), detailing their issuance mechanisms and trading modalities. Using GNPC as a strategic vehicle within the carbon trading market framework, the study evaluates the potential impacts of incorporating nuclear power into China’s market-oriented low-carbon transition policy tools. Furthermore, it critically examines the potential challenges and uncertainties associated with establishing these market-based policy instruments. The study recommends future research directions focusing on two key areas: first, investigating the dynamic interactions between nuclear power integration and the evolving carbon trading and electricity markets; second, quantifying the systemic effects of this mechanism on China’s power supply structure and power sector emissions. These research endeavors are essential to provide robust scientific evidence for formulating effective strategies and policies regarding the integration of nuclear power into China’s market-based low-carbon transition framework.