The Landscape of Methane Abatement Finance

The report finds that targeted methane abatement finance is severely underfunded, representing less than 2% of total climate finance at USD 11.6 billion in 2019/2020. Despite the high mitigation potential and availability of low-cost technologies, particularly in the fossil fuel sector, investment is disproportionately concentrated in the waste sector. The authors argue that a tenfold increase in annual finance is required to meet the estimated USD 119 billion needed to keep warming under +2C.

• Targeted methane abatement finance is critically insufficient, totaling USD 11.6 billion in 2019/2020, which is less than 2% of total climate finance flows. To keep global warming under +2C, an estimated USD 119 billion is needed annually through 2050, necessitating at least a tenfold increase in current funding.
• There is a significant misalignment between methane mitigation potential and financial allocation. The fossil fuel sector has the highest potential for mitigation by 2030 but received the lowest amount of finance, representing less than 0.5% of total methane abatement funding (USD 0.1 billion), far below the estimated annual need of USD 31.6 billion through 2050.
• The waste sector received the majority of targeted methane abatement finance in 2019/2020, totaling USD 7.3 billion. Much of this was directed toward waste-to-energy projects, specifically waste incinerators which accounted for USD 4.6 billion, although these can generate significant CO2 emissions.
• The AFOLU sector attracted USD 4.3 billion in annual targeted finance in 2019/2020, significantly below the estimated annual need of USD 43.2 billion through 2050. Over half of these investments focused on bioenergy projects using forestry and crop residues, while specific solutions for livestock enteric fermentation and rice paddies remain underserved.
• Geographically, methane abatement finance is concentrated in the East Asia and Pacific region, which received USD 6.0 billion (over 50% of tracked finance). In contrast, South Asia and Latin America & Caribbean combined produced 28% of methane emissions but received only 5% of tracked finance.
• Private sector financial flows accounted for USD 6.2 billion of the tracked finance, primarily in commercially viable segments like waste-to-energy. The public sector contributed USD 4.5 billion, with Development Finance Institutions (DFIs) providing USD 1.5 billion (13% of total flows), playing a critical role in the AFOLU sector.

APA

Rosane, P., Naran, B., Pastor, A. O., & Connolly, J. (2022). The Landscape of Methane Abatement Finance. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/07/Summary-l-Landscape-of-Methane-Abatement-Finance.pdf

Chicago

Rosane, Paul, Baysa Naran, Angela Ortega Pastor, and Jake Connolly. The Landscape of Methane Abatement Finance. Climate Policy Initiative, 2022. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/07/Summary-l-Landscape-of-Methane-Abatement-Finance.pdf.

Wikipedia

{{cite report |last1=Rosane |first1=Paul |last2=Naran |first2=Baysa |last3=Pastor |first3=Angela Ortega |last4=Connolly |first4=Jake |title=The Landscape of Methane Abatement Finance |publisher=Climate Policy Initiative |date=July 2022 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2022/07/Summary-l-Landscape-of-Methane-Abatement-Finance.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rosane2022landscape, author = {Rosane, Paul and Naran, Baysa and Pastor, Angela Ortega and Connolly, Jake}, title = {{The Landscape of Methane Abatement Finance}}, institution = {Climate Policy Initiative}, year = {2022}, month = jul, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2022/07/Summary-l-Landscape-of-Methane-Abatement-Finance.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }