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Methane Reduction
A New Focus for Carbon Neutrality

English

AUG 2026

Insight

Beyond Carbon

Summary:
This report examines the critical role of methane mitigation in China's pathway toward carbon neutrality, recognizing methane as a potent but short-lived greenhouse gas that offers significant near-term climate benefits. It provides a comprehensive analysis of China's methane emission sources, trends, and reduction potential across key sectors—coal mining, agriculture (livestock and rice cultivation), oil and gas, and waste management—noting that coal mining and agricultural activities are the dominant contributors. The report assesses the technical and economic feasibility of various mitigation measures, identifies data gaps and cost barriers as major challenges, and highlights opportunities arising from China's energy transition, circular economy policies, and carbon market mechanisms. It recommends accelerating international cooperation, developing national and regional methane action plans, engaging state-owned enterprises in early action, and strengthening financial support through green finance instruments.
Suggested citation:
Hu Min, Liang Hong, Chen Meian, Wu Wanyi, Geng Haomiao. (2022). Methane Reduction: A New Focus for Carbon Neutrality. Beijing: Institute of Finance and Sustainability, Hillhouse Institute of Industry and Innovation, and Institute for Global Decarbonization Progress (iGDP).
Methane Reduction