Mobilizing sustainable finance for the bio-energy sector
About Climate Policy Initiative (CPI)
CPI is an analysis and advisory organization with deep expertise in finance and policy. Our mission is to help governments, businesses, and financial institutions drive economic growth while addressing climate change. CPI has six offices – Brazil, India, Indonesia, Kenya, the United Kingdom, and the United States.
About the GMH – CBI Mobilizing sustainable finance for methane abatement Program
Climate Bonds Initiative, C40, and Climate Policy Initiative (CPI) are collaborating on a program supported by the Global Methane Hub (GMH) to drive credible methane abatement actions aligned with 1.5°C goals by facilitating finance flows to key sectors. This initiative will enhance investors’ understanding of methane abatement within the green and sustainable finance market.
By July 2026, the project aims to:
- Increase by 10% (from a 2024 baseline) the number of public and private stakeholders integrating methane abatement into their 1.5°C transition plans using credible frameworks and standards.
- Boost finance flows (from a 2023 baseline) toward methane abatement investments through strategic engagement and capacity-building efforts.
The program will develop financing frameworks backed by an in-depth analysis of technologies, policies, and regulations to accelerate green finance for methane abatement in paddy cultivation, livestock management, fossil fuel operations, and waste management. Unlocking this investment potential requires greater awareness among corporate, financial, and policy stakeholders about credible abatement measures and their role in decarbonization.
To achieve these objectives, CPI India will engage in targeted media outreach, including hosting webinars, organizing roundtables, creating infographics, distribution of press releases, and participating in conferences.[ST1] [MC2]
As the first of its kind, the India team is hosting a webinar, “Mobilizing Finance for Methane Mitigation in the Bioenergy Sector,” on May 23rd, 2025. This marks the first in a series of media engagements and stakeholder consultations. The session will focus on mobilizing green finance for the bioenergy sector, featuring insights from academia, banking and finance, oil marketing companies (OMCs), and NGOs.
Background
According to the Biennial update report (BUR)-4[1]India’s total greenhouse gas (GHG) emissions in 2020 were 2,437 Mt CO₂e, with methane accounting for 13.32%. Methane (CH₄) is a potent short-lived greenhouse gas, with a 20-year GWP ~80 times that of CO₂ and 28-36 times over 100 years (IPCC). Despite its 12-year lifespan, methane emissions are projected to rise to 13% by 2030 under a business-as-usual scenario[2]. Key sources in India include agriculture (such as rice cultivation and enteric fermentation), fossil fuel extraction and transportation (including leakages and flaring), and waste decomposition in landfills.
Given the significant role of methane in climate change, bioenergy emerges as a strategic solution, converting methane emissions into a valuable source of energy. By harnessing methane from biomass, organic waste, and agro-residues, bioenergy technologies can not only mitigate emissions but also contribute to clean energy generation, energy security, reduced dependence on fossil fuels for energy needs, and employment generation. Expanding bioenergy adoption can play a crucial role in India’s low-carbon transition, fostering sustainability and energy resilience.
Context
India has over 1,000 million metric tons (MMT) of biomass available annually, with the potential to produce 62 million metric tons (MMT) of bio-CNG (~86 billion cubic meters per year)—enough to meet approximately 9% of the country’s energy demand. However, current production is just 3.2 BCM/year[3]. Despite its potential, the adoption of bioenergy faces several challenges, including policy and regulatory gaps, technological and operational constraints, and financial barriers. To bridge this gap, the Government of India has launched initiatives like SATAT, viability gap funding, and blending mandates, aiming for 15% natural gas in the energy mix by 2030[4].
The bioenergy sector plays a crucial role in methane mitigation in two key ways:
- Methane capture and utilization:
- Biogas plants capture methane from decomposing organic waste and convert it into useful energy, preventing its direct release into the atmosphere.
- CBG production refines biogas into biomethane, which can replace fossil fuels in transportation and industry.
- Reduction of open biomass decomposition:
- Agricultural and municipal waste left in open dumps releases methane as it decomposes.
- Efficient waste-to-energy conversion diverts this waste into bioenergy projects, reducing uncontrolled methane emissions.
Relevant Policies
- Sustainable Alternative Towards Affordable Transportation (SATAT) Initiative (2018)
- Launched by the Ministry of Petroleum & Natural Gas (MoPNG) to promote compressed biogas (CBG) production.
- Encourages private sector investment in bioenergy and biogas plants.
- Galvanizing Organic Bio-Agro Resources Dhan (GOBARDhan) scheme
- Aims to convert livestock and organic waste into biogas and organic fertilizers, further improving rural sanitation.
- National Policy on Biofuels (2018, revised in 2022)
- Supports second-generation (2G) biofuels derived from agricultural waste.
Objective of the Convening
The webinar seeks to engage with stakeholders, including industry representatives, policymakers, financiers, academia, think tanks and non-government organisations (NGOs), and solution providers to:
- Discuss the current industry scenario and the policy environment, including the relevant schemes in India, such as SATAT and GOBARDhan
- Identify barriers faced by participants in the various segments in creating viable business models and in obtaining finance
- Discuss strategies and solutions to overcome these barriers, including:
- Transformative technologies and business models to achieve scale
- Possible policy interventions and ecosystem enablers
- Innovative financing and de-risking mechanisms
[1] https://unfccc.int/documents/645149
[2] https://www.globalmethanepledge.org/imperative-methane-action
[3] https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2023/05/2023053179.pdf
[4] https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1917439
[ST1]We do not create podcasts or videos, and neither do we have the budget to undertake these activities. We may issue a press release, but that might not generate good traction.
[MC2]Deleted podcasts and videos. Added those as it was mentioned in the proposal document.
