Although several researches have been conducted for CO 2 injection in shale gas reservoirs, there is definite lack of study that concentrates on the multi-component transport and geomechanical effect. This paper presents shale gas model for CO 2 injection considering dissolution, molecular diffusion and stress-dependent permeability as well as multi-component adsorption. Based on information of Barnett shale reservoir, a simulation model is constructed for CO 2 flooding. Extended Langmuir isotherm is used to simulate the competitive sorption among the molecules involved. Gas solubility is represented by Henry's law. Co-and counter-diffusive transportsare depicted by Sigmund correlation. Stress-dependent permeability in shale reservoir is considered by exponential correlation with the linear-elastic constitutive model. In the proposed model, the mechanisms and parameters which could influence on CO 2 injection are studied. A series of reservoir simulations based on these effects are performed to study effective injection of CO 2 .Mechanisms of CO 2 injection in shale gas reservoir contribute to both enhanced CH 4 recovery and storage of CO 2 . Desorption of CH 4 in the model with the multi-component adsorption is activated by competitive sorption with the CO 2 which is preferentially adsorbed over CH 4 with a ratio up to 5:1. Molecular diffusion enables CO 2 to displace CH 4 in ultra-low matrix permeability condition. The model with molecular diffusion presents wide spread CO 2 in the reservoir compared with the model not considering molecular diffusion. Because of ultra-low permeability of shale reservoir, effect of diffusion is higher than conventional reservoirs so that it should be considered in the CO 2 injection model of shale reservoir. CO 2 injection supports the reservoir pressure so that effect of stress-dependent permeability is mitigated compared with primary recovery model. In this model, CO 2 injection improves shale gas recovery about 12%. The CO 2 injected in the reservoir exists as a super-critical phase, adsorption trapping, and dissolution trapping of 45.8, 46.5, and 3.6%, respectively. According to reservoir and fracture parameters, amount of each state would be changed. The sensitivity analysis for either enhanced CH 4 recovery or CO 2 storage is conducted to investigate the critical parameters that control these CO 2 -EGR process and CO 2 storage, respectively.This work presents study for mechanisms of CO 2 injection in shale gas reservoir taking account of multi-component adsorption, dissolution, molecular diffusion, and geomechanical effect and sensitivity analysis for uncertain parameters of the shale reservoir. The investigation is important for better understanding and design of CO 2 injection in order to enhance CH 4 recovery and CO 2 storage.