Guidance for Including Methane Abatement in Oil and Gas Debt Structuring

Climate Bonds Initiative took part in the Methane Finance Working Group (MFWG) to help develop new guidance on integrating methane abatement into oil and gas debt structuring. This guidance was published on 25 June during London Climate Action Week.

Drawing on cross-institutional expertise, the framework sets out clear project eligibility criteria, safeguards, and disclosure requirements for credible methane-focused instruments in upstream oil and gas. It establishes solid core principles for financing methane abatement through debt markets and sets a precedent for incorporating methane considerations into labelled debt — a key step towards unlocking private sector investment in high-impact mitigation.

As part of this project, Climate Bonds is also analysing the policy and financing landscape in priority sectors and providing tailored policy recommendations to support credible transition plans that integrate methane abatement.

In collaboration with the Environmental Defense Fund.