CO 2 -ECBM is capable of realizing CO 2 sequestration and coalbed methane (CH 4 ) production simultaneously. Practical coal seam contains H 2 O, thus significantly influencing adsorption, desorption, diffusion, and flow capability of CO 2 and CH 4 . Accordingly, the impacts of H 2 O on adsorbed CH 4 on coal displaced by CO 2 were investigated to gain a further understanding on CO 2 -ECBM. The results derived from this study indicate that the occurrence of H 2 O with coal positively relates to oxygenic functional groups and mesopores of coal. Particularly, the oxygenic functional group of the coal matrix acts as a primary adsorption site for H 2 O. The mesopore of coal is the main space for H 2 O occurrence. Furthermore, the impact of H 2 O on CO 2 adsorption on coal depends on dissolution capability and competitive adsorption of H 2 O. With respect to coal with a low H 2 O content, the dissolution of CO 2 in H 2 O is dominant at high CO 2 adsorption equilibrium pressure, thus leading to increasing CO 2 adsorption capability of coal, while the opposite trend is applicable for coal with a high H 2 O content. With regard to the displacement process, injecting CO 2 promotes desorption of adsorbed CH 4 from dry and moist-equilibrated coals. The absolute adsorption amount of CO 2 at the equilibrium state for displacement is lower than that in single-component adsorption for both dry and moisture-equilibrated coals at equilibrium pressures below 3 MPa, whereas the adverse trend exists for a high equilibrium pressure range of 3−4 MPa. Moreover, the elevated CO 2 injection pressure favors both CO 2 adsorption and CH 4 desorption on dry and moisture-equilibrated coals. The presence of H 2 O decreases the CO 2 adsorption amount and CH 4 desorption amount of the coals. Therefore, practical implementation of CO 2 -ECBM should focus on the H 2 O dependence of CO 2 sequestration and CH 4 recovery.