This treatise points out that one of the fundamental reasons for registration of Clean Development Mechanism (CDM) project in China to be rejected and withdrawn by the Executive Board of CDM (EB) lies in errors in understanding and interpretation of the methodology and tools, shortage of basic ability to comprehensive analysis, over self-confidence and its own interests pursued by the Designated Operational Entity (DOE) designated by Executive Board of CDM (EB) of United Nations, which lead to

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... ts serious mistakes in identifying applicable methodology to the project in question. Therefore, a recommendation to EB that capacity training and personal ability relevant to validator of DOE under higher and more strict conditions should be required and that its review process should be strictly and effectively controlled as well as a relevant institution for complaint and arbitration and an exit mechanism for DOE involved should be established,which is the most vulnerable point at present for CDM and one of the fundamental reasons for inefficient operation and frequent mistakes in its review as well. Meanwhile, it indicates, through study and analysis in depth on the dispute to appropriate methodology in implementation, the methodology theory itself and its application defect in more depth in methodology and its institution design and improvement process: Vacancy of project scenario denotation and mismatch of baseline connotation as well as problem in terms of form and content associated with designed classification and improvement of methodologies. Finally, it gives analyzed conclusion, detailed suggestions for design/exploitation and improvement/development of methodologies, as well as alternative reform idea in directionality on methodology design, exploitation and improvement of CDM.