The sheer scale and gravity of the climate crisis presents an unparalleled challenge. With a speedily closing window of intervention, mitigation opportunities yielding the highest impact must be prioritized. Methane (CH4) emissions present a critical nexus where swift and effective measures can yield substantial results. For this reason, focusing on methane emissions reduction is a strategic necessity for meaningful climate action.
Why Methane?
Reducing methane emissions has the biggest return on investment (ROI) both for the market and for the planet. Methane is responsible for approximately a third of global climate change. While methane is a short-lived climate pollutant (SLCP), breaking down faster than other greenhouse gases, it is 86x more powerful in contributing to atmospheric warming than CO2 in the first 20 years following emission. Specifically because of the disproportionate warming attributed to methane, abatement of emissions yields the most impactful results. Another benefit lies in the fact that the majority of methane emissions come from three key sectors: agriculture, energy and waste. Therefore, strategies that key in on the relatively few sources within these industries can have a massive impact.
Estimates suggest that reducing methane emissions by 30-60% below 2020 levels by 2030 would avert .3° C of global warming and reduce ground-level ozone, complementing long term strategies for mitigating climate change. While the degree of necessary reduction may seem daunting, available and scalable solutions could reduce methane emissions by as much as 45% with low or negative implementation costs. The most effective strategies including, but not limited to, livestock feed management, landfill methane capture, and elimination of flaring or venting, are already known and ready to commercialize. This gap demonstrates the need for a deepening of corporates’, investors’, and innovators’ engagement in deploying these solutions fully.
A key focus area is finance. Funding for methane emission reduction lags far behind finance for CO2, with recent figures suggesting that only 2% of climate finance is directed to methane. The disparity stems from, among other factors, challenges related to monitoring, reporting, and verification, and the fact that methane is generally less understood than CO2. That being said, recognition of methane as the most impactful near-term climate intervention is growing both in policy and in the private sector.
Methane at COP28
Recent global efforts reflect a shift in public perception and political will, as demonstrated by the outcomes of COP28 in Dubai. To name a few of the meaningful outcomes for methane at COP28:
The Global Methane Pledge expanded its membership to a total of 156 governments
50 oil and gas companies (representing 40% of global oil production) committed to end routine flaring and near-zero upstream methane emissions by 2030 in the Oil and Gas Decarbonization Charter (OGDC)
The Global Methane Hub formally launched the Enteric Fermentation R&D Accelerator with $200 million in funding
The World Bank launched Global Flaring and Methane Reduction Partnership, providing $255 million in new grant funding
UN Environmental Programme launched a new data tool, UNEP Methane Alert and Response System (MARS) to provide high-tech, accessible, and reliable data to stakeholders on methane emissions
Beyond COP
More significant commitments were made around methane than in any preceding COP, though there are still some significant holes. The majority of the new grant programs and funding are catalytic funding, meaning they are meant to kickstart or enable initiatives. These programs are designed to help young companies that demonstrate promising solutions. However, these funds run dry after a company develops to a certain point. Therefore, the private sector must step in to drive the adoption and deployment of innovations to the scale needed to close the emissions gap.
The outcomes of COP28 underscore the urgency of action against methane, and highlight areas for improvement. The key takeaway: the private sector must rise to the challenge and find ways to turn catalytic funding into scale funding for methane solutions. Methane mitigation adds to the bottom line of both business and ecological stability, and we need the private sector’s buy-in to make it happen.