The breakthrough of clean and efficient shale gas stimulation technology and reduction of global carbon emissions is in a critical period. The injection of supercritical carbon dioxide (SCCO 2 ) into shale gas reservoirs, fracturing the reservoir and displacing preadsorbed CH 4 , enhancing gas recovery, and completing CO 2 geological storage, is regarded as an optimum scheme due to its engineering advantages and high adsorption capacity and preference in shale. This investigation systemically summarizes the theoretical understanding and research progress on SCCO 2 fracturing technology and the displacement of CH 4 by CO 2 in shale gas development practice and theoretical simulation in the past decade and proposes the current challenges and prospects. The fracture space distribution characteristics of hydraulic fracturing and SCCO 2 fracturing and the stimulation effectiveness of the shale gas reservoir are compared. The low viscosity, high diffusion coefficient, and zero surface tension of SCCO 2 bring up its distinctive advantages for fracturing engineering. And the recovery of CH 4 is much higher than that from hydraulic fracturing. The adsorption capacity and preference for CO 2 are greater than those for CH 4 , caused by its molecular structure, properties, thermodynamics, and kinetics. Shale gas reservoirs are widely distributed and enormous resources. Several shale gas reservoirs in several basins are deemed to store CO 2 by several to tens of gigatons. However, the wide commercial application of CO 2 has been limited due to (i) the high cost of CO 2 capture and transportation, (ii) low sand carrying capacity, nonuniform distribution, and easy settlement of proppant, (iii) the complex coupling mechanism of CO 2 −CH 4 − H 2 O−shale, and (iv) the environmental threat after CO 2 storage. Therefore, it is urgent to develop a thickener and cosolvent with economical, clean, safe, and environmentally friendly characteristics that is highly compatible with SCCO 2 . High-precision reduction models of the structural characteristics and pore-fracture distribution characteristics of kerogen and mineral components are necessary to simulate competitive adsorption of CO 2 and CH 4 . Additionally, a perfect monitoring system for CO 2 leakage risk should be established near CO 2 storage sites to avoid impact and harm to the atmosphere, groundwater, and surface ecosystems.