Do methane reduction credits have potential to cool the planet?

Methane emissions from human activities have surged by 20 per cent over the past two decades, according to the Global Methane Budget 2024, which was released recently. 

Methane, a potent greenhouse gas, is responsible for significant global warming, with a heat-trapping ability over 80 times greater than carbon dioxide in the first 20 years after its release. 

Unlike carbon dioxide, which can linger in the atmosphere for centuries, methane typically remains for only seven to 12 years. This short lifespan means that reducing methane emissions can immediately benefit climate stabilisation.

The primary sources of methane emissions include agriculture, landfills, and fossil fuel production, with approximately 60 per cent stemming from human activities such as industrial agriculture and fossil fuel extraction. While natural sources also contribute to methane emissions, human actions dominate the landscape. 

As global temperatures rise, processes such as permafrost thawing and methane release from wetlands are becoming increasingly significant. These natural sources can release substantial amounts of methane that may exacerbate the overall greenhouse gas burden in the atmosphere. 

Consequently, understanding the interplay between anthropogenic and natural methane emissions is crucial for developing comprehensive strategies to mitigate climate change effectively.

The International Energy Agency (IEA) reports that around 70 per cent of methane emissions from fossil fuels originate from just 10 countries. Notably, the energy sector is responsible for over one-third of human-related methane emissions, indicating that targeting this sector could yield substantial reductions in the near term. It is estimated that about 40 per cent of current methane emissions from fossil fuels could be eliminated at no net cost.

Addressing methane reduction has emerged as a vital strategy in combating climate change. Implementing effective measures slows the pace of global warming and improves air quality and public health. Capturing and reducing methane can mitigate air pollution risks while providing renewable energy sources for cooking and electricity generation. Communities engaged in these projects often benefit from job creation and improved waste management practices.

One innovative approach to facilitate methane reduction is using methane credits. These financial instruments represent one tonne of avoided or captured methane emissions and can generate economic, environmental and social advantages. 

Projects that capture methane, such as those at landfills or agricultural facilities, can convert this harmful gas into renewable energy or prevent its release altogether. The revenue generated from selling these credits can be reinvested into further emission reduction initiatives or used to stimulate local economies by creating jobs in green technology sectors.

The World Bank's Methane Reduction Blueprint exemplifies efforts to monetise these reductions globally, offering financial incentives for industries to invest in cleaner technologies. The US Environmental Protection Agency’s Methane Emissions Reduction Program targets emissions specifically from oil and gas sectors while addressing community health concerns associated with these industries.

Understanding the distinction between methane and carbon credits is crucial for policymakers and businesses developing greenhouse gas reduction strategies. While both types of credits aim to combat climate change, they differ significantly in their impact due to methane's higher global warming potential than carbon dioxide. 

Methane credits are generated through projects to reduce emissions from sources like landfills and agricultural practices. Each credit corresponds to one tonne of avoided or captured methane, equating to approximately 25 tonnes of CO₂. In contrast, carbon credits are derived from projects that prevent or remove CO₂ emissions through renewable energy initiatives or reforestation efforts.

The mechanisms for generating carbon credits are generally more established than those for methane credits. However, the immediate impact of reducing methane emissions makes these credits particularly valuable in climate change mitigation efforts. The Climate and Clean Air Coalition estimates that cutting anthropogenic methane emissions by 50 per cent over the next three decades could lower global temperature rise by about 0.2°C, a critical step toward keeping global warming below 2°C.

While both types of credits provide economic incentives for reducing greenhouse gas emissions, their roles differ within broader regulatory frameworks like cap-and-trade systems that encourage long-term investment in cleaner technologies. The integrity of both methane and carbon credits is essential for maintaining trust in these markets; rigorous verification processes ensure that reductions are tangible and measurable.

Countries worldwide increasingly recognise the importance of reducing methane in their climate strategies. Innovative projects are being pursued across Europe and North America to tackle this issue; however, Africa faces unique challenges and opportunities in implementing these technologies. With significant potential for capturing methane from agricultural waste and landfills, Africa must address hurdles such as low carbon credit prices that hinder project viability.

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