Abstract: An SWOT(strengths，weaknesses，opportunities，threats) analysis of the development of CDM projects in Sichuan Province leads to the conclusion that sufficient water resources in Sichuan Province lay a solid foundation for CDM project development which is guaranteed by legislation and foreign financial and technical support. However，disadvantages like relatively small scale，simplex emission reduction type and uneven regional distribution of CDM projects obstruct the overall scale and balanced development of low carbon economy in Sichuan. The unique risks of CDM projects and the uncertainty of global emission reduction policy after 2012 are threatening the development of low carbon economy in Sichuan. In order to promote low carbon economy by means of CDM projects，we should give priority to advantageous resource projects，study the laws of CDM project operation，strengthen government guidance，and establish independent pricing mechanism and credit hedge mechanism，etc.

Key words: Sichuan, CDM project, energy conservation and emission reduction, SWPT analysis, low carbon economy