Global warming and climate change represent one of the greatest challenges for today's governments and organizations. The increased concentrations of greenhouse gases (GHGs) in the atmosphere, caused by the human activities in the modern industrialized world, are considered as the main causes. However, to tackle this problem also needs the participations of the developing countries. China takes centre stage among developing countries on the climate change arena due to its large quantity of carbon dioxide emission. The coal- dominated energy with low efficiency and the increasing energy demand due to the drive of the rapid economic growth makes China become the second largest CO2 emitter after the United States. For example, the CO2 emission was 3047.72 million tons in 2000, about 13.0% of the world's total CO2 emissions. If China could achieve a high level of GHGs control, it could be considered a major advance in addressing climate change. However, as one developing country, China is lack of finances and advanced technologies to reduce its CO2 emission. Its main concern is local pollutants such as particulate and SOX, which have caused serious environmental problems and is threatening the human health. The Clean Development Mechanism (CDM) is such a mechanism which can link the industrialized and developing countries together to combat the climate change. It intends to assist developing countries achieve sustainable development by providing incentives for industrialized countries to invest cost-efficient GHGs reductions projects in these countries. The developed countries can receive some credits by investing and implementing GHGs emission reductions projects in the developing countries, then use these credits to fulfil their legally binding quantitative obligations laid down in the Kyoto Protocol. The objective of this report is to identify the potential energy technologies that could be transferred to China under the CDM. The report could be used as the guidance for Sweden and other developed countries when designing and implementing CDM projects in China in the future. The climate change policy, energy policy, economy development, energy resource, energy demands, energy efficiency and energy technology status are presented and analyzed. Potential CDM projects survey in China was conducted. China's low marginal abatement costs due to its low energy efficiency, inferior energy technology could make it an ideal country for implementing CDM projects. The technologies, which can improve the air quality while reducing CO2 emission, will have more advantages. These technologies include wind power, solar energy, biomass and geothermal energy. Some clean coal technologies are also good alternatives considering that coal's dominant position in China will continue for the foreseeable future. However, some barriers to technology transfer under the CDM should be considered, and some recommendations are presented which might be used to overcome these barriers in the future.