Methane Abatement in Sustainable Taxonomies

This report analyzes the integration of methane abatement in sustainable finance taxonomies, focusing on Colombia, the EU, Indonesia, South Africa, and Thailand. It finds that current frameworks suffer from incomplete sectoral coverage, a preference for usability over technical rigor, and a lack of specific performance metrics. To address these gaps, the report provides a benchmark of abatement activities and a comprehensive set of best-practice measures—including specific GHG thresholds and LDAR requirements—to help taxonomy developers mobilize the estimated USD 48 billion annual investment needed for methane mitigation by 2030.

• Methane abatement is a highly cost-effective climate mitigation opportunity, yet it is severely underfunded. Annual investment in 2021/22 was less than USD 14 billion, and preliminary data suggests a drop to approximately USD 6 billion in 2023, significantly below the estimated USD 48 billion required annually through 2030.
• The reviewed taxonomies exhibit incomplete sectoral and activity coverage. Entire sectors are sometimes omitted or deferred, and key economic activities associated with methane emissions are frequently excluded. Technical screening criteria (TSC) are often inconsistent or missing performance thresholds and compliance metrics.
• There is a systemic tendency in taxonomy development to prioritize usability over technical accuracy. This often results in the replacement of science-based thresholds with generic requirements. For example, Thailand's taxonomy mirrors the EU's approach to landfills but omits specific restrictions based on landfill opening dates, relying instead on high-level requirements for monitoring or contingency plans.
• Methane-related technical screening criteria often lack specificity, particularly when abatement is treated as a safeguard rather than a primary objective. In the agriculture sectors of Colombia and Thailand, sustainable practices are listed without methane-specific metrics like leakage rates or emission thresholds. Similarly, the waste sector often fails to define terms like "productive use" or specify acceptable leakage rates.
• The report establishes a benchmark for 'methane abatement activities' (those directly reducing emissions, such as anaerobic digestion of biowaste) and 'methane release risk activities' (those where methane is a byproduct requiring safeguards, such as rice production).
• The report proposes specific best-practice measures for the energy sector, including the use of Life Cycle Assessments (LCA) to demonstrate compliance with GHG emission thresholds. It recommends specific tools for this purpose, such as BIOGRACE II (EU), RSB GHG Calculator (International), and RenovaCalc (Brazil).
• For the agriculture sector, best practices include implementing feed management plans with verified additives to achieve at least a 10% methane reduction per treated animal. For rice production, it recommends practices that reduce flooding days by at least 10% or achieve a measurable CH4 emission reduction of at least 1.5% per year relative to a baseline.
• In the solid waste and wastewater sectors, best practices for landfill gas capture include restricting eligibility to closed landfills or cells, requiring productive use of captured methane, and disallowing flaring systems except as part of a time-bound transition plan.
• The report defines minimum requirements for Leakage Detection and Repair (LDAR) systems to ensure credibility. These include mandatory third-party revision, at least one monthly visual inspection of high-risk components, and annual leak detection and quantification by an external professional.

APA

Wetmańska, Z., Fernandes, P. D. A., Miao, G., Shankar, V., & Alanah, I. (2025). Methane Abatement in Sustainable Taxonomies. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/Methane-Abatement-in-Sustainable-Taxonomies.pdf

Chicago

Wetmańska, Zofia, Pedro de Aragão Fernandes, Gaoyi Miao, Varun Shankar, and Ines Alanah. Methane Abatement in Sustainable Taxonomies. Climate Bonds Initiative, 2025. https://www.climatebonds.net/files/documents/publications/Methane-Abatement-in-Sustainable-Taxonomies.pdf.

Wikipedia

{{cite report |last1=Wetmańska |first1=Zofia |last2=Fernandes |first2=Pedro de Aragão |last3=Miao |first3=Gaoyi |last4=Shankar |first4=Varun |last5=Alanah |first5=Ines |title=Methane Abatement in Sustainable Taxonomies |publisher=Climate Bonds Initiative |date=December 2025 |url=https://www.climatebonds.net/files/documents/publications/Methane-Abatement-in-Sustainable-Taxonomies.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wetmaska2025methane, author = {Wetmańska, Zofia and Fernandes, Pedro de Aragão and Miao, Gaoyi and Shankar, Varun and Alanah, Ines}, title = {{Methane Abatement in Sustainable Taxonomies}}, institution = {Climate Bonds Initiative}, year = {2025}, month = dec, url = {https://www.climatebonds.net/files/documents/publications/Methane-Abatement-in-Sustainable-Taxonomies.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }