How to Cut Methane Emissions

Limiting global warming to 1.5 to 2 degree 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. This Note provides...

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Bibliographic Details
Main Author: Parry, Ian
Other Authors: Black, Simon, Minnett, Danielle, Mylonas, Victor
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2022
Series:Staff Climate Notes
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:Limiting global warming to 1.5 to 2 degree 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. This Note provides background on methane emission sources, presents practical fiscal policy options to cut emissions, and assesses impacts. Putting a price on methane, ideally through a fee, would reduce emissions efficiently, and can be administratively straightforward for extractives industries and, in some cases, agriculture. Policies could also include revenue-neutral 'feebates' that use fees on dirtier polluters to subsidize cleaner producers. A USD 70 methane fee among large economies would align 2030 emissions with 2oC. Most cuts would be in extractives and abatement costs would be equivalent to just 0.1 percent of GDP. Costs are larger in certain developing countries, implying climate finance could be a key element of a global agreement on a minimum methane price
Physical Description:27 pages
ISBN:9798400224256