China is short of clean energy,particularly conventional natural gas. The proven percapital natural gas reserve is only 1/12th of the worldaverage. However, China has large coal bed methane (CBM)resources with development potential which can be recoveredfrom surface boreholes independent of mining and in advanceof mining, and also captured as a part of underground coalmining operations. However, in order to meet its targets,the government must improve the administrative framework forCBM resource management, introduce more effective CBM orcoal mine methane (CMM) development incentives, raise thetechnical capacity of the mining sector, expand gas pipelineinfrastructure and promote gas markets in coal mining areas.In order to significantly reduce methane emission from coalmines and better exploit the gas recoverable from coalseams, the government should introduce measures to:strengthen the CBM/CMM policy, legal and regulatoryframework to improve resource management; improve CMMavailability and quality so more can be utilized; enhanceincentives to promote expansion of CBM/CMM exploitation anddestruction of surplus drained CMM; and Promote developmentof regional development strategies to take advantage ofspecific local advantages.