Abstract: In China, the coal-bed methane reserves is extremely rich, but its industrialization development level is low. This is directly related to the legal environment of industrial development. The legal environments of industry mainly include the following legal environments covering legislation, investment and financing, finance, market management. The paper, based on the investigation on the legal environments of CBM industry of the developed countries including the United States, Canada, Australia and Germany, finds that the legal environments of CBM industry in these countries have the following characteristics: complete legislation, investment and financing with unhindered accesses, active support of finance and taxation and mature market operations. Chinese CBM industry needs to learn from the experiences of countries outside the region：to fill the gaps in legislation and improve the legislation hierarchy; to set up reward(or subsidy) systems and build diversified investment and financing platforms; to simplify the implementation procedure of tax privilege and elevate the degree of policy incentives; to break the pipeline monopoly and encourage market competition and to regulate gas price by the market, and then improve the legal environment of our country's CBM industry from different perspectives of legislation, banking, finance, market.