A novel energy saving and emission reducing（ESER） mode which takes the minimum energy consumption and pollutant emissions as object for generation market is proposed. The proposed mode includes three parts， i.e. capacity contract tradeoff， variable cost bid， and energy consumption and pollutant emission ordering. By capacity contract tradeoff， the exchange between the high energy consumption generation unit and low energy consumption units can be achieved to handle the fixed cost differences among generation units. The variable cost is the characterization of the energy consumption， by variable cost bid and pollutant emission ordering， the electricity generation of each generation unit can be determined to reach the energy saving and emission reducing social goal. At last， the corresponding mathematical model and its solution method are given. The simulation results of an example system verify that the proposed mode is operable.