{
  "title": "How to Cut Methane Emissions",
  "publication": "Staff Climate Notes, October 31, 2022",
  "sourceUrl": "https://www.imf.org/en/publications/staff-climate-notes/issues/2022/10/28/how-to-cut-methane-emissions-525188",
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  "summary": "Limiting global warming to 1.5 to 2°C above preindustrial levels requires rapid cuts in greenhouse gas emissions. This includes methane, which has an outsized impact on temperatures. To date, 125 countries have pledged to cut global methane emissions by 30 percent by 2030.",
  "sections": [
    {
      "heading": "Background on methane and the climate goal",
      "content": "- Methane has an outsized impact on temperatures relative to its atmospheric concentration.\n- To date, 125 countries have pledged to cut global methane emissions by 30 percent by 2030.\n- Limiting global warming to 1.5 to 2°C above preindustrial levels requires rapid cuts in greenhouse gas emissions, including methane."
    },
    {
      "heading": "Sources and opportunities for mitigation",
      "content": "- Most emissions reductions would be in extractives (e.g., oil, gas, and coal sectors).\n- In some cases, agriculture is administratively amenable to pricing-based approaches for reducing methane."
    },
    {
      "heading": "Fiscal policy options analyzed",
      "content": "- Putting a price on methane, ideally through a fee, would reduce emissions efficiently.\n- Revenue-neutral “feebates” are a complementary policy option: fees on dirtier polluters subsidize cleaner producers.\n- A fee-based approach can be administratively straightforward for extractives industries and, in some cases, agriculture."
    },
    {
      "heading": "Quantitative scenario and cost assessment",
      "content": "- A $70 methane fee among large economies would align 2030 emissions with 2oC.\n- Most cuts under this scenario would occur in extractives.\n- Abatement costs under the modeled scenario would be equivalent to just 0.1 percent of GDP.\n- Costs are larger in certain developing countries, implying differential burden across countries and the potential role for international support."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Implement a methane price (fee) as a primary tool for efficient emissions reduction.\n- Consider revenue-neutral feebates to protect competitiveness and support cleaner producers.\n- Recognize the need for climate finance or international cooperation to address higher costs facing certain developing countries and to enable a global agreement on a minimum methane price.\n\nStaff Climate Note: \"How to Cut Methane Emissions\" by Ian W.H. Parry, Simon Black, Danielle N Minnett, and Victor Mylonas (October 31, 2022).\n\n---\n\n Content in this bundle\n\n- How to Cut Methane Emissions; IMF Staff Climate Note 2022/008. October 2022\n  - How to Cut Methane Emissions; IMF Staff Climate Note 2022/008. October 2022 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - How to Cut Methane Emissions; IMF Staff Climate Note 2022/008. October 2022 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/staff-climate-notes/issues/2022/10/28/how-to-cut-methane-emissions-525188"
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    "Authors: Ian W.H. Parry, Simon Black, Danielle N Minnett, Victor Mylonas",
    "Published: October 31, 2022",
    "Series: Staff Climate Notes",
    "DOI: https://doi.org/10.5089/9798400224256.066",
    "Methane has an outsized impact on temperatures relative to its atmospheric concentration.",
    "To date, 125 countries have pledged to cut global methane emissions by 30 percent by 2030.",
    "Limiting global warming to 1.5 to 2°C above preindustrial levels requires rapid cuts in greenhouse gas emissions, including methane.",
    "Most emissions reductions would be in extractives (e.g., oil, gas, and coal sectors).",
    "In some cases, agriculture is administratively amenable to pricing-based approaches for reducing methane.",
    "Putting a price on methane, ideally through a fee, would reduce emissions efficiently.",
    "Revenue-neutral “feebates” are a complementary policy option: fees on dirtier polluters subsidize cleaner producers.",
    "A fee-based approach can be administratively straightforward for extractives industries and, in some cases, agriculture.",
    "A $70 methane fee among large economies would align 2030 emissions with 2oC.",
    "Most cuts under this scenario would occur in extractives.",
    "Abatement costs under the modeled scenario would be equivalent to just 0.1 percent of GDP.",
    "Costs are larger in certain developing countries, implying differential burden across countries and the potential role for international support.",
    "Implement a methane price (fee) as a primary tool for efficient emissions reduction.",
    "Consider revenue-neutral feebates to protect competitiveness and support cleaner producers.",
    "Recognize the need for climate finance or international cooperation to address higher costs facing certain developing countries and to enable a global agreement on a minimum methane price.",
    "**How to Cut Methane Emissions; IMF Staff Climate Note 2022/008. October 2022**"
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