The landscape of methane abatement finance
Sharp and rapid reductions in methane emissions this decade are essential to limiting global warming to 1.5°C. While carbon dioxide has a longer lasting effect, methane has 80 times the warming power of CO2 in the first 20 years after emissions reach the atmosphere, meaning methane is setting the pace for near-term global warming. Reducing human-caused methane emissions by 30% this decade from 2020 levels, as set out in the Global Methane Pledge, would avert at least 0.2°C in global warming by 2050 (CCAC and UNEP, 2021). Even though methane is responsible for nearly half of net global warming to date, our findings show that finance for methane abatement measures represented less than 2% of total climate finance flows, or just over USD 11 billion, in 2019/2020. At least a ten-fold increase in methane abatement finance is necessary to meet the estimated more than USD 110 billion needed from private and public sources annually. This first-of-its-kind report on methane mitigation finance aims to assess global investment in methane abatement activities and create a baseline against which investment needs and progress can be measured.