This brief, from Climate Policy Initiative (CPI) and the Climate and Clean Air Coalition (CCAC), assesses the gap between methane abatement financing tracked during 2021–2023 and the investment required to meet the Global Methane Pledge (GMP) target of reducing emissions by at least 30 percent from 2020 levels by 2030.

With a 1.5 °C temperature overshoot now widely assessed as locked in, the central challenge is to limit peak warming, reduce the duration of exceedance, and return temperatures below that level (United Nations 2026). Slowing warming in the near term will require urgent action to reduce emissions of methane (CH₄)—a powerful greenhouse gas responsible for roughly one-third of today’s warming —alongside rapid mitigation of other non-carbon dioxide greenhouse gases and deep and sustained decarbonization.

Methane mitigation offers one of the fastest and most cost-effective opportunities to deliver near-term benefits for climate, air quality, public health, food security, and economic development. The GMP, launched in 2021 at COP26, has catalyzed ambitious action and now includes 159 countries and the European Union. Participants have committed to taking voluntary action toward a collective goal of reducing global methane emissions by at least 30 percent from 2020 levels by 2030. Achieving the target can generate substantial climate, health, and agriculture benefits valued at more than US$ 330 billion annually by 2030 (UNEP 2025).

The necessary emission reductions are technically feasible, and the financing challenge associated with achieving the GMP target can now be quantified. The Global Methane Status Report estimated US$ 122 billion in annual capital expenditure (CAPEX) and US$ 101 billion in annual operation and maintenance costs (OPEX). Methane abatement can also generate significant financial returns, including approximately US$ 96 billion annually from valorization of recovered natural gas and biogas, bringing the estimated net annual costs to US$ 127 billion (UNEP 2025).

Against this benchmark, this brief tracks methane abatement finance across three major methane-emitting sectors – fossil fuels, waste, and agriculture – from 2021 to 2023. The analysis compares tracked flows with estimated annual costs through 2030 under the Maximum Technically Feasible Reduction (MTFR) scenario assessed in the Global Methane Status Report (UNEP 2025). It presents sectoral and regional findings and concludes with recommendations for scaling methane abatement finance, highlighting how different stakeholders can improve the enabling environment and deliver sector-specific solutions to increase finance.

This brief forms part of the joint body of work by Climate Policy Initiative (CPI) and the Climate and Clean Air Coalition (CCAC) under the Super Pollutant Investment Analysis and complements the State of Super Pollutants Abatement Finance report (CPI 2026c).

Key findings

Tracked global methane abatement finance totaled US$ 5.2 billion in 2023, declining from US$ 7.7 billion in 2021. This represents only 4 percent of the estimated US$ 122 billion annual CAPEX to achieve the GMP target by 2030. At the aggregate level, US$ 3.4 billion (66 percent) came from public sources and US$ 1.8 billion (34 percent) from private sources. Finance was also predominantly international, with US$ 3.7 billion (71 percent) from international sources, compared with US$ 1.5 billion (29 percent) from domestic sources. However, these aggregate figures mask substantial differences across sectors and subsectors, reflecting distinct project economics, financing structures, and data availability.

Fossil fuels

Limited data and an absence of standardized reporting frameworks constrain the tracking of methane abatement finance in the fossil fuel sector. Obtaining these figures is also hindered by the difficulty of isolating methane-specific investments from broader OPEX. Against this backdrop, tracked finance for fossil fuel methane abatement remains very limited, reaching just US$ 20 million in 2023 and US$ 360 million in 2021, with no 2022 flows identified.

Methane abatement in the fossil fuel sector requires an estimated annual US$ 96 billion in CAPEX and US$ 42 billion in OPEX by 2030, with recovered natural gas generating around US$ 40 billion in annual savings. Readily available technologies could cut methane emissions by 94 million tonnes (Mt) annually, providing the largest cost-effective mitigation potential across sectors, with many interventions yielding high financial returns. Mobilizing finance will require stronger regulatory frameworks and targeted financing instruments, while ensuring responsible asset management and avoiding long-term fossil fuel lock-in.

Agriculture

Agriculture accounted for US$ 1.4 billion (27 percent) of tracked methane abatement finance in 2023, up from US$ 1.1 billion in 2021 after dipping to US$ 845 million in 2022. In 2023, over 85 percent was directed to measures related to smallholder and pastoralist systems and rice paddy management. Sub-Saharan Africa received the largest share of finance (55 percent), followed by East Asia and the Pacific (20 percent). Public sources drove financing in 2023 (86 percent), with grants and low-cost debt making up most financial instruments. Although cost-effective solutions exist, high upfront costs and limited access to finance constrain adoption.

Meeting the sector’s estimated annual needs of US$ 13 billion in CAPEX and US$ 54 billion in OPEX by 2030 will require stronger financing frameworks and greater private sector engagement. Blended finance can help address upfront financing barriers, while developing carbon-market opportunities and clearer standards, such as science-based sector-specific eligibility criteria for methane-relevant measures, could unlock additional private capital.

Waste

Methane abatement finance in the waste sector fell for the second consecutive year to US$ 3.8 billion in 2023, down from US$ 6.2 billion in 2021. The decline was largely due to reduced investment in solid waste-to-energy (WtE) incineration, although investment in non-incineration and upstream solutions increased from a low base. Finance was divided broadly between activities in solid waste (US$ 1.8 billion) and wastewater (US$ 2 billion). Private finance dominated solid waste, while public finance – particularly from multilateral and bilateral development finance institutions (DFIs) – supported wastewater. Finance also remained geographically concentrated, with South Asia and sub-Saharan Africa accounting for limited investment despite growing needs.

The waste sector requires an estimated US$ 13 billion in annual CAPEX through 2030. However, its cost profile and fragmented network of municipalities and local implementers create challenges for both scaling investment and tracking it. Scaling finance will require broader investment across the waste hierarchy, stronger municipal project pipelines and revenue models, and improved access to larger-scale finance.

Recommendations

Methane abatement offers one of the fastest and most cost-effective opportunities for slowing near-term global warming. Reducing methane emissions has been described as the climate ‘emergency brake’ while also delivering major benefits for air quality, public health, food security and economic development. Recognizing the urgency, the United Nations Secretary-General’s Call to Action on Methane (United Nations 2026) sets out priorities for governments, industry and financial institutions to accelerate implementation across fossil fuels, agriculture and waste, which have been referenced and built upon to inform the recommendations in this report.

Increasing financial flows alone will not be sufficient to deliver the reductions needed. Public and private institutions should strengthen the enabling environment for methane abatement by improving policy and regulatory frameworks, developing credible project pipelines and standards, and expanding access to appropriate forms of capital. These cross-cutting actions should be complemented by sector-specific measures to address the distinct barriers to investment in fossil fuels, agriculture, and waste.

The brief identifies six priority areas for scaling methane abatement finance:

1. Embed methane abatement in national policies, strategies, and regulations.
2. Strengthen monitoring, reporting and verification (MRV) systems to improve transparency, accountability, and investor confidence.
3. Build bankable project pipelines through project preparation, aggregation mechanisms, and targeted de-risking instruments.
4. Fossil fuels: embed methane abatement in credible transition plans and leverage buyer and importer demand, regulation, and supply-chain partnerships to create stronger market signals and support suppliers in investing in methane reductions.
5. Agriculture: support targeted research and development (R&D) and innovation to scale practical, cost-effective abatement solutions and approaches suited to fragmented production systems.
6. Waste: improve the bankability of municipal waste methane projects through improved revenue collection, project aggregation and municipal pipelines.

Explore the methane brief