Environmental protection market is the fundamental condition for developing environmental protection industry. Under the guidance of China’s environmental protection and ecological civilization construction strategy，although Shanghai’s environmental protection industry has taken root in the early stage of reform and opening up，the real environmental protection market in Shanghai was initially formed in the 1990s. Firstly，this paper reviews the development history of Shanghai environmental protection industry and its market for 40 years，and clarifies the connotation and classification of Shanghai environmental protection industry. Secondly，problems in the development of Shanghai’s environmental protection market are analyzed through survey data. Finally，based on the development trend of global environmental protection market and foreign market of environmental protection cultivation experience，this paper argues that Shanghai should play a good “five centers” of the construction of the city function orientation，in many ways to speed up the cultivation in the market of environmental protection of the global city characteristics，play to the role of the Shanghai city dock source and flow and service market，establish environmental protection market is “made in Shanghai” and “Shanghai service” benchmarking；At the same time，in view of the problems existing in Shanghai’s environmental protection market，it is suggested that Shanghai integrate and clarify the government’s environmental protection management functions under the reform requirements of the ministry system. Give full play to the platform role of environmental protection industry associations and improve the environmental protection standard system；Promote business model innovation of environmental protection enterprises and improve environmental protection market performance；Advocate public participation in green consumption and stimulate local market demand for environmental protection.