Landscape of Methane Abatement Finance 2023

The report finds that global methane abatement finance reached USD 13.7 billion in 2021/22, yet remains far below the estimated annual need of USD 48 billion by 2030. While the AFOLU sector saw a 77% increase in funding, the fossil fuel sector—which has the highest mitigation potential—received less than 1% of tracked finance. Private sources provided 70% of total funding, primarily through debt and equity, while public finance declined by 10%. Geographically, East Asia and the Pacific, the U.S. and Canada, and Western Europe are the top recipients, leaving a significant support gap in Latin America and South Asia.

• Global annual finance for methane abatement increased by 18% from USD 11.6 billion in 2019/20 to USD 13.7 billion in 2021/22, but this is still significantly lower than the estimated annual requirement of USD 48 billion by 2030.
• The fossil fuel sector has the highest methane abatement potential (34 MtCH4 per year for oil and gas) but received less than 1% of tracked finance in 2021/22, totaling only USD 10.6 million.
• The AFOLU sector was the only sector to see growth in finance, with a 77% increase to USD 7.5 billion in 2021/22, largely driven by manure-to-energy activities and crop/forestry residue-to-energy solutions.
• Finance for the waste sector decreased by over USD 1 billion from 2019/20 to USD 6.1 billion in 2021/22, remaining well below the estimated annual need of USD 20.4 billion by 2030.
• Private sources provided 70% of methane abatement finance (USD 9.6 billion), with commercial financial institutions and corporations as the primary actors. Public finance decreased by 10% to USD 4 billion, with multilateral DFI finance dropping by 50%.
• There is a severe geographic imbalance in funding; while East Asia and the Pacific, the U.S. and Canada, and Western Europe are the top recipients, Latin America and South Asia received only 1.8% and 1.3% of global finance respectively, despite accounting for 26% of global emissions.
• Debt was the most common financial instrument at 57% (USD 7.9 billion), followed by equity at 40% (USD 5.5 billion), while grants represented only 2% (USD 0.3 billion).

APA

Fernandes, P. D. A., Naran, B., Gupta, I., Wignarajah, D., Connolly, J., Patience, L., & Zhang, T. (2023). Landscape of Methane Abatement Finance 2023. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Landscape-of-Methane-Abatement-Finance.pdf

Chicago

Fernandes, Pedro de Aragão, Baysa Naran, Ishrita Gupta, Dharshan Wignarajah, Jake Connolly, Luke Patience, and Tinglu Zhang. Landscape of Methane Abatement Finance 2023. Climate Policy Initiative, 2023. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Landscape-of-Methane-Abatement-Finance.pdf.

Wikipedia

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BibTeX

@techreport{fernandes2023landscape, author = {Fernandes, Pedro de Aragão and Naran, Baysa and Gupta, Ishrita and Wignarajah, Dharshan and Connolly, Jake and Patience, Luke and Zhang, Tinglu}, title = {{Landscape of Methane Abatement Finance 2023}}, institution = {Climate Policy Initiative}, year = {2023}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Landscape-of-Methane-Abatement-Finance.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }