Financing China’s Methane Abatement

This report analyzes China's position as the world's largest methane emitter and explores how sustainable finance can accelerate abatement in the energy, agriculture, and waste sectors. It highlights a significant investment gap, estimating China's annual methane abatement needs at USD 7.7 billion. While policy frameworks like the Methane Emissions Control Action Plan and updated NDCs are emerging, the report argues that a lack of quantitative targets, technical standards, and integrated MRV systems hinders private investment. It recommends incorporating methane into the national ETS, refining green taxonomies, and encouraging financial institutions to set science-based methane targets.

• China is the world's largest national methane emitter, contributing 16% of global emissions. In 2021, total emissions (including LULUCF) were 60.6 million tons, with the energy sector accounting for 46% and agriculture for 40%.
• The energy sector's methane emissions are dominated by coal, which represents approximately 93% of the sector's methane. Abandoned coalmines are a significant source; in 2024, they emitted 6 million metric tons, with 60% originating from China.

APA

Xie, W., Chen, Y., Xu, X., Li, S., Jin, P., Burge, L., Van Coppenolle, M., Maxwell, S., & Harrison, C. (2026). Financing China’s Methane Abatement. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/Climate-Bonds_Financing-China%E2%80%99s-Methane-Abatement_Report_EN_Mar-2026.pdf

Chicago

Xie, Wenhong, Yunhan Chen, Xiaoyun Xu, Shaoxin Li, Patrick Jin, Lily Burge, Magali Van Coppenolle, Sarah Maxwell, and Caroline Harrison. Financing China’s Methane Abatement. Climate Bonds Initiative, 2026. https://www.climatebonds.net/files/documents/publications/Climate-Bonds_Financing-China%E2%80%99s-Methane-Abatement_Report_EN_Mar-2026.pdf.

Wikipedia

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BibTeX

@techreport{xie2026financing, author = {Xie, Wenhong and Chen, Yunhan and Xu, Xiaoyun and Li, Shaoxin and Jin, Patrick and Burge, Lily and Van Coppenolle, Magali and Maxwell, Sarah and Harrison, Caroline}, title = {{Financing China’s Methane Abatement}}, institution = {Climate Bonds Initiative}, year = {2026}, month = feb, url = {https://www.climatebonds.net/files/documents/publications/Climate-Bonds_Financing-China%E2%80%99s-Methane-Abatement_Report_EN_Mar-2026.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }