Policy-level changes to lower methane emissions and tackle climate change

What is it about?

Reducing greenhouse gas (GHG) emissions is important to tackle climate change. One of the main GHGs that contributes to global warming is methane, which is released by the burning of fossil fuels. Although a total of 125 countries have pledged to reduce methane emissions by 30% in the next 10 years, current efforts are not enough to achieve that goal. This paper talks about practical policy-based solutions to lower the release of methane, which can help limit global warming to 1.5 2°C. Policies should introduce prices on methane emissions in the form of fines and taxes. These can be charged depending on the amount of methane produced. The penalty can also be used to give finance subsidies to clean fuel producers and policies that provide incentives to the developers of vehicles that use clean fuel and emit less GHGs.

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Photo by Megumi Nachev on Unsplash

Photo by Megumi Nachev on Unsplash

Why is it important?

Most climate change prevention measures focus on carbon dioxide emissions but these only account for about 65% of the total GHG emissions. Achieving a zero-carbon goal alone is not enough to prevent climate change. Although methane makes up only 20% of the emissions, it contributes highly to global warming. The sources of methane release are diverse, ranging from coal mines to farming. Holistic approaches and policy measures are needed to control these emissions. Fear of monetary setbacks could discourage industries from producing large amounts of methane. KEY TAKEAWAY: This paper suggests possible policy changes to reduce methane emissions, which is a key contributor to climate change. These changes require national and global cooperation and financiale support from developed countries. Disclaimer - This summary was prepared by Kudos Innovations Ltd and does not necessarily represent the views of International Monetary Fund (IMF).