Barriers and Solutions to Scaling-up Methane Finance

This report identifies barriers standing in the way of critical funding for global methane mitigation and lays out recommendations for both funders and recipients to establish and execute this important climate funding stream. It synthesizes responses from interviews with development bank representatives, donor governments, experts in key methane sectors, and other experts in development and climate finance and identifies two types of funding barriers, “supply-side” and “demand-side.”

To begin to overcome structural barriers to international methane mitigation financing, the report lays out several recommendations.

Funders and financial institutions should: 

• Promote methane mitigation alongside development objectives 
• Prioritize methane mitigation in funding activities 
• Track methane mitigation impacts and financing distinctly within frameworks tracking greenhouse emissions and climate finance  
• Share best practices to allow for widespread adoption 

Those receiving funds, including developing countries, can: 

• Promote coordination and planning on methane mitigation across government ministries and different levels of government 
• Develop investable methane mitigation project pipelines 
• Promote methane mitigation with supportive policies