This paper first describes the state-of-the-art of compressed natural gas (CNG) technologies and evaluates the market prospects for CNG vehicles in Beijing. An analysis of the natural gas resource supply for fleet vehicles follows. The costs and benefits of establishing natural gas filling stations and promoting the development of vehicle technology are evaluated. The quantity of GHG reduction is calculated. The objective of the paper is to provide information of transfer niche of CNG vehicle and equipment production in Beijing. This paper argues that the development of CNG vehicles is a cost-effective strategy for mitigating both local air population and GHG.