Methane Abatement in Sustainable Taxonomies

This executive summary, published in December 2025 by the Climate Bonds Initiative and Climate Policy Initiative, provides a framework of best-practice measures for incorporating methane abatement into sustainable finance taxonomies. It identifies specific technical and performance criteria across four high-potential sectors—energy, agriculture, solid waste, and wastewater—to help policymakers and investors direct capital toward cost-effective methane mitigation.

• Investment in methane abatement is significantly below the required levels; annual investment was less than USD 14 billion in 2021/22 and preliminary data indicates a drop to approximately USD 6 billion in 2023, while an estimated USD 48 billion per year is needed through 2030.
• Sustainable finance taxonomies can catalyze methane mitigation by identifying sustainable projects, supporting green or sustainability-linked bonds and blended finance, and reducing perceived risks and funding costs through consistent signals.
• The report analyzed five specific taxonomies as case studies to assess methane abatement coverage: Colombia, the European Union (EU), Indonesia, South Africa, and Thailand.
• Best-practice measures for the energy sector include the implementation of Leakage Detection and Repair (LDAR) and specific lifecycle GHG emission thresholds for bioenergy. For bioenergy electricity generation, the maximum specific GHG emissions are set at 36.6 gCO2e/MJ.
• In the agriculture sector, best practices for livestock include dietary manipulation to mitigate enteric fermentation and feed management plans using verified additives to achieve at least a 10% methane reduction per treated animal.
• For rice production, recommended measures focus on water and irrigation management, such as implementing practices to reduce flooding days by at least 10% or achieving a measurable CH4 emission reduction of at least 1.5% per year relative to a baseline.
• Best practices for solid waste and wastewater management emphasize the transition from flaring-only systems to value-added use within three years and the use of airtight environments for digestate storage for at least 50 + x days (where x is 2 days per mass percent of non-manure-based feedstock, max 150 days).
• Minimum requirements for Leakage Detection and Repair (LDAR) systems include mandatory repairs if leaks exceed 2% of annual production or 50 tonnes per year, with a follow-up test within six months to confirm effectiveness.

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_Summary.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_Summary.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_Summary.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_Summary.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }