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Resources and Environment Policies

Implementing national policy and exploiting CBM

Li Weiming, China clean gas energy prospects and policy research group, Institute of Resources and Environment Policy

Research Report No 84, 2014(Total No 4583)


The exploitation of coalbed methane (CBM) and turning it into something beneficial and profitable has social and economic significance. For the past few years, with the support of national fiscal, tax and technology policies, the coalbed methane business has developed steadily and has done much to reduce greenhouse gas emissions, increase clean energy supplies, and guarantee the safety of coal mines. And it has played an important role in the country's efforts to build a green, efficient and secure modern energy system and sustainable energy.

After studying various gas fields, for example, Qinnan of Shanxi province, some problems appeared in the exploitation of coalbed methane that could prevent us from reaching our goals under the 12th Five-Year Plan(2011-2015), including disputes over mining rights, lack of policy implementation, lack of funding, and poor industrial standards.

In view of these problems, this report suggests improving the mining rights system, making the cost of coalbed methane more reasonable, improving fiscal and tax policies, expanding financing channels for CBM, and improving coalbed methane industry standards.