Accelerating the fossil gas transition to net zero

This executive summary from the Climate Bonds Initiative argues that fossil gas can no longer be considered a transition fuel due to methane leakage and the urgent need to halve global carbon emissions by 2030 to limit warming to 1.5°C. It advocates for a rapid leap to renewable energy and low-carbon hydrogen, while warning against incremental strategies like gas blending and the construction of new fossil gas infrastructure.

• Fossil gas is not a viable transition fuel because the global carbon budget for a 1.5°C limit cannot accommodate new unabated fossil gas infrastructure. Furthermore, methane emissions from the energy sector are reported to be 70% higher than official figures, and a leakage rate of just 3% can make the carbon intensity of gas-fired power equivalent to that of coal-fired plants.
• Incremental decarbonization strategies, specifically gas blending, are described as inefficient and regressive. A hydrogen blend of 5% by volume only displaces 1.6% of fossil gas, creating risks of stranded assets and high costs for retrofitting. The document asserts that the only valid retrofit pathway is repurposing infrastructure for 100% hydrogen distribution, though this potential is limited.
• Low-carbon hydrogen is identified as a critical transition tool for hard-to-abate sectors, with the potential to grow from 2% to 13-14% of the EU energy mix. However, deployment must be prioritized by impact; for instance, hydrogen can reduce emissions by 98% in steel production but only by one-third in cement production. Additionally, grid-connected electrolysers must be paired with new renewable energy generation to avoid increasing fossil-powered electricity demand.
• The EU energy transition is estimated to require an additional EUR 390 billion in investment per year over the next decade. This comes at a time when fossil fuel investments still account for 45% of global energy investment.

APA

Climate Bonds Initiative (n.d.). Accelerating the fossil gas transition to net zero. https://www.climatebonds.net/files/drupal-files/files/CBI_GasPolicy_2022_01_Summary_B.pdf

Chicago

Climate Bonds Initiative. Accelerating the fossil gas transition to net zero. n.d. https://www.climatebonds.net/files/drupal-files/files/CBI_GasPolicy_2022_01_Summary_B.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Accelerating the fossil gas transition to net zero |url=https://www.climatebonds.net/files/drupal-files/files/CBI_GasPolicy_2022_01_Summary_B.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiativendaccelerating, author = {{Climate Bonds Initiative}}, title = {{Accelerating the fossil gas transition to net zero}}, institution = {Climate Bonds Initiative}, url = {https://www.climatebonds.net/files/drupal-files/files/CBI_GasPolicy_2022_01_Summary_B.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }