Aiming at the low energy transmission efficiency of the passive induction setting system with the existing codes, an improved CMI code is proposed as baseband code by changing the equivalent average time of high level during a code cycle under 2ASK modulation. The properties are analyzed, such as energy transmission efficiency, power spectrum and the error probability in incoherent demodulation in AWGN channel. The code is successfully applied to passive induction setting system, and the decoding method and measured voltage waveform are given. With the code, the energy transfer efficiency is improved by 60% than that of CMI code. It is not only beneficial to energy transmission, but also has the merit of CMI code that the bit timing information is extracted easily, which is fully utilized in incoherent demodulation to solve the sampling moment error accumulation problem resulted from the instability of internal oscillator.