Spotlight: Financing Oil & Gas Methane Abatement in Southeast Asia

This policy brief by the Climate Policy Initiative examines the financing gaps and opportunities for methane abatement within the oil and gas sector in Southeast Asia. It highlights that while the sector is a major methane emitter and offers cost-effective reduction opportunities, there is a significant lack of tracked financing and regulatory frameworks to drive abatement.

• The energy sector in Southeast Asia was responsible for 275 million metric tonnes of methane (CO2e) in 2020. If business-as-usual continues, these emissions could quadruple by 2050.
• Methane abatement in the oil and gas sector is often cost-effective; the IEA estimates that 80% of reduction options worldwide could be implemented at no net cost and avoid 40% of emissions from fossil fuel operations.
• There is a critical lack of financing for methane abatement in the region's oil and gas sector. CPI tracked no financing targeting this specific sector in Southeast Asia for the periods 2019/2020 and 2021/2022.
• Several barriers hinder methane abatement in Southeast Asia, including limited operator capacity, a lack of accurate emission data, insufficient infrastructure for captured gas, underdeveloped regulatory frameworks, and a lack of clear definitions for transition finance.
• While all ASEAN Member States have included methane abatement in their Nationally Determined Contributions (NDCs), strategies specifically targeting oil and gas methane emissions are generally missing.
• Public international finance for methane abatement in Southeast Asia has been limited to other sectors. In 2021/2022, the Export-Import Bank of Korea provided USD 97 million per year for water and wastewater projects, and the Asian Development Bank provided USD 18 million per year for AFOLU.
• Private sector initiatives are emerging, such as the ASEAN Energy Sector Methane Leadership Program (MLP) launched in June 2023. Led by PETRONAS, this 18-month initiative focuses on capacity building, reduction targets, and financing options.

APA

Alberti, C., & Naran, B. (2023). Spotlight: Financing Oil & Gas Methane Abatement in Southeast Asia. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Spotlight-Financing-Oil-Gas-Methane-Abatement-in-Southeast-Asia.pdf

Chicago

Alberti, Caroline, and Baysa Naran. Spotlight: Financing Oil & Gas Methane Abatement in Southeast Asia. Climate Policy Initiative, 2023. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Spotlight-Financing-Oil-Gas-Methane-Abatement-in-Southeast-Asia.pdf.

Wikipedia

{{cite report |last1=Alberti |first1=Caroline |last2=Naran |first2=Baysa |title=Spotlight: Financing Oil & Gas Methane Abatement in Southeast Asia |publisher=Climate Policy Initiative |date=November 2023 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Spotlight-Financing-Oil-Gas-Methane-Abatement-in-Southeast-Asia.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{alberti2023spotlight, author = {Alberti, Caroline and Naran, Baysa}, title = {{Spotlight: Financing Oil \& Gas Methane Abatement in Southeast Asia}}, institution = {Climate Policy Initiative}, year = {2023}, month = nov, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Spotlight-Financing-Oil-Gas-Methane-Abatement-in-Southeast-Asia.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }