Based on three different contracts (i.e. consignment, revenue sharing, and revenue sharing with reduction-costsharing), decision models are developed in the supply chain, which consists of a low carbon manufacturer and a retailer, and meanwhile the customer demand is affected by emissions reduction level and selling price. Furthermore, assuming that the deterministic component of the demand is linear form and the random component of the demand follows a uniform distribution, the optimal decisions are explored under centralized and decentralized systems respectively. The results show that supply chain cooperation can raise the emissions reduction level and increase the expected total profit. Finally, the effects of different parameters on the coordination of supply chain’s performance are discussed.