Methane Abatement in Sustainable Taxonomies

Methane is a high‑impact pollutant with a global warming potential more than 80 times that of CO2 over 20 years, and has accounted for roughly 30% of historical warming. Yet, finance for methane abatement—one of the most cost-effective mitigation opportunities currently available—remains low.

Sustainable finance taxonomies are required to play a catalytic role in directing finance to methane mitigation. Financial frameworks like taxonomies are key to directing investment toward methane abatement. This report presents a comparative analysis of how each selected taxonomy incorporates methane abatement activities within its sustainable finance framework. Five taxonomies— those of Colombia, the European Union (EU), Indonesia, South Africa, and Thailand—are examined as case studies to provide a balanced sample reflecting different levels of maturity, complexity, and regional context.

The aim is to identify gaps, highlight best practices, and offer practical guidance for taxonomy developers and policymakers on how to more effectively embed methane abatement in sustainable finance standards.