Abstract Compressed Natural Gas (CNG) is an alternative fossil fuel to gasoline. CNG has several advantages, like: the price is much cheaper than gasoline; its combustion produces a lower amount of CO2 and other undesirable gasses. For instance, in 100 km ride a gasoline car will emit 22 kg of CO2, while a CNG one will emit 16,3 kg. Thereafter, it also helps to mitigate greenhouse gas (GHG) emissions and it is lighter than the air, and that is why safer. The use of CNG as a fuel has steadily grown (around 30% per year). China seats within the top 7 countries of natural gas powered vehicles in the world. This ranking, and tighter emissions regulations, will aim to increase the amount of CNG cars enormously. China expects to have more than 3 million CNG cars by 2020. However, the total car population in China by 2014 was around 112 million, with an average rate of production of 18 million of cars annually. One could wonder, is China CNG’ strategy really working? Will it really have an impact on CO2 emissions? Will it make a difference to the current environmental problems that the country is facing? This paper through a bibliographic review and considering current fossil fuels market conditions, aims to identify the current status of CNG in China, as well as to predict its future within the environmental policy of the country. Keywords: CNG, cars, refueling station, Environmental policy, CO2 emissions, greenhouse gasses. Introduction Most of the non-OECD economies are dependent upon energy and commodities market. They base their rapidly industrializing growth in energy consumption. For instance, China alone accounts for more than 40% of the global energy consumption growth. In fact, China is heavily dependent upon oil imports. Most of the Oil China acquires come from the Middle East and other unstable economies such as Venezuela and Russia. This fact puts China in a delicate political situation, forcing it to be dependent upon volatile oil markets and politically unstable countries. China’s goal of being self-sufficient in all the energy supply chain has been set. Therefore, the need to find and produce energy from domestic sources is imperative. Currently, coal represents around 70 % of China energy consumptions. This implies the enormous amount of coal deposits around the country. And as a consequence, and due to the large amount of coal reserves, China possesses high reserves of coal bed methane. On the other hand, China emissions’ landscape continue to grow to levels far beyond permissible standards. For example, Beijing presents pollution levels that are 23 times higher than in New York City. A recent study demonstrated the relation between pollution and mortality rate in China. It implies that around 1,6 million of people die every year due to the problems related to pollution. Moreover, it states that around 92 % of China total population is exposed to more than 120 hours of unhealthy air in a period of 4 months. The study concludes that emissions are the reason for around 17 % of all deaths in China. Many academics and researches have stated and demonstrated through the empirical studies that the adoption of Natural Gas could help in aiming both goals, the energy independence and the reduction of emissions (Rhode, et al. Jha Praket, et al. Houser Trevor). They have managed to demonstrate the tight relation that exists between the transportation industry and private mobility, with the emission levels. Furthermore, China has one of the biggest automobiles fleet of the world with around 112 million of vehicles on the road. Most of which are powered by conventional fuels, such as gasoline or diesel. This paper will walk through the current energy situation in China and its direct influence on emissions levels, making special focus on the vehicles fleet’s footprint. Later, it will argue that the use of CNG will ultimately help in improving both, energy security and environmental landscape of China.