Towards a new methodology for assessing abatement progress across financial institutions’ transition plans
Summary
A research paper by the Climate Policy Initiative evaluating the integration of methane abatement into the transition plans of 10 leading banks and institutional investors, finding limited overall action and a significant gap in agrifood sector coverage.
Key insights
- Methane is a potent driver of climate change, accounting for roughly 29% of historical warming and possessing over 80 times the near-term warming impact of CO2, yet finance for cost-effective abatement technologies in the agrifood and oil and gas sectors remains insufficient.
- A review of 10 leading banks and institutional investors reveals that most have only started integrating methane into transition plans, with only 3 of 10 showing action on methane-related targets. While 7 of 10 show some implementation—primarily through policy engagement and methane risk disclosure—many fail to provide baselines, sectoral coverage, or achievement strategies.
- There is a notable disparity in how financial institutions address different sectors; methane emissions in agrifood systems remain largely unaddressed, whereas the oil and gas sector sees stronger action, though this requires better emissions measurement techniques to improve further.
Cite the original document
- APA
- Climate Policy Initiative (2026). Towards a new methodology for assessing abatement progress across financial institutions’ transition plans. https://www.climatepolicyinitiative.org/publication/working-paper-exploring-financial-institutions-action-on-methane/
- Chicago
- Climate Policy Initiative. Towards a new methodology for assessing abatement progress across financial institutions’ transition plans. 2026. https://www.climatepolicyinitiative.org/publication/working-paper-exploring-financial-institutions-action-on-methane/.
- Wikipedia
- {{cite report |author=Climate Policy Initiative |title=Towards a new methodology for assessing abatement progress across financial institutions’ transition plans |date=17 February 2026 |url=https://www.climatepolicyinitiative.org/publication/working-paper-exploring-financial-institutions-action-on-methane/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{climatepolicyinitiative2026towards, author = {{Climate Policy Initiative}}, title = {{Towards a new methodology for assessing abatement progress across financial institutions’ transition plans}}, institution = {Climate Policy Initiative}, year = {2026}, month = feb, url = {https://www.climatepolicyinitiative.org/publication/working-paper-exploring-financial-institutions-action-on-methane/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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