Adopting a new paradigm for social development implies a transition to a circular economy. The above requires the reduction of greenhouse gas emissions, the utilization of wastes, and the use of renewable energy sources. The most promising way is the use of methanol for industrial and transport applications. China is experiencing a boom in methanol production and its use in almost every sector of the economy. The purpose of this study was to reveal economic benefits, carbon dioxide emissions and the potential production of green methanol. Fuel price history, energy costs and fuel economy were used for economic assessment. Life cycle analysis to evaluate carbon dioxide emissions was applied. It was revealed that only the use of green methanol as a fuel results in decreases in well-to-wheel CO2 emissions compared to fossil fuels. The potential methanol production by using recycled waste and wind power was determined. Its annual production can range from 6.83 to 32.43 million tones. On this basis, a gradual transition to a circular and methanol economy is possible. Policymakers are recommended to support green methanol production in China. It can result in boosting the application of vehicles fueled by methanol and can control CO2 emissions.