Abstract: Based on the three kinds of policy instruments, 548 policy provisions from 28 selected innovative policy texts related to coal bed methane(CBM) industry in China are analyzed.The utilization of supply side instruments reflects the intervention of the government in the innovation of CBM industry.The utilization of environmental policy instruments provides a beneficial environment for the development of CBM industry.Demand side policy instruments mainly act on CBM transportation, indirectly promoting CBM industrial innovation.The total utilization number of policy instruments shows an increasing trend.The environmental policy instruments are most frequently used in the CBM industry innovation policies and the utilization of supply side policy instruments is slowly increase.Due to the restriction of technology on the development of CBM industry, the use of supply policy instruments should be further strengthened in the formulation of innovation policy, and the effect of policy instruments, especially environmental policy instruments, should be enhanced.In addition, in the process of CBM industrial development, the combination of policy instruments should be considered to solve various key constraints and promote the healthy development of CBM industry.