Decarbonization of the shipping industry has become a strategic game of national energy security and trade influence. Liquefied biomethane (LBM), as a low-carbon and renewable marine fuel, is emerging as the preferred “bridge fuel” for shipping decarbonization due to its significant environmental and economic advantages. This paper first assesses the substantial potential of China’s biogas resources. Then provides a comprehensive overview of LBM-related regulations and policies, including the IMO’s CII 、 GFI regulations、Fuel EU Maritime and RED III policies. The paper also explores the technical and economic advantages of LBM, highlighting its high compatibility with existing LNG engines and bunkering systems, as well as its potential for reducing greenhouse gas emissions. Furthermore, it analyzes the challenges of commercializing LBM, such as resource collection, technological barriers, and market acceptance, and proposes corresponding systemic solutions. Finally, the paper suggests promoting the application of LBM in the shipping industry through resource development, technological innovation, and policy support, improve production efficiency and quality, introduction of subsidies and incentive policies to boost market penetration, and the establishment of an international standard system to facilitate the centralized allocation and usage of LBM.