After taking into account such uncertain factors as technological advance，electricity price，fuel price，carbon price，investment subsidy policies and emission reduction rate，we have constructed a real-option model for power producers’carbon abatement． Based on this model，conditions of thresholds，timing and subsidy rules for abatement investment are presented． The results indicate that: (1) the risk of carbon price fluctuation inhibits investment in mitigation projects; (2) technological progress and investment subsidies will encourage investment in abatement projects，but current carbon price and technologies cannot support grandscaled CCS investment; and (3) collaborative abatement projects may improve emission reduction rate，and thus stimulate power producers’investments．