Methane was a Big Win at #COP26 -here's why

As the world digests the outcomes from Glasgow there is a mixture of relief, hope and disappointment, but I believe the outcome for methane stands out as a clear success. Until recently, methane was not getting the attention it deserved given its major contribution to global warming, so I was pleasantly surprised to see a very busy pavilion inside the Blue Zone dedicated to methane. So why is it on everyone’s radar now?

• Monitoring satellites have made an invisible problem visible. For the first time, we can measure the methane emissions from fossil fuels, which often are much higher than previous estimates.
• These data is reaching a wider audience, thanks in particular to the outstanding work of Aaron Clark and his team at Bloomberg. When a gas pipeline or coal mine releases large volumes of methane into the atmosphere, we now are much more likely to find out about it.
• Regulators are finally able to implement policies based on quantifiable plans that can deliver lower emissions in a verifiable manner. ?

Kayrros was an active participant in this debate during COP26, both inside the Blue Zone and at several side events. In addition to the Methane Pavilion, we were invited by the governments of France, Morocco and Poland to describe how carbon emissions from the production of fossil fuels can be measured more accurately than ever —and how energy companies can leverage monitoring satellites to reduce their carbon footprint.

The technology to cut methane emissions is already available -what is needed now is the incentive to act.?

That is why I find it very exciting to see the governance for methane reduction falling in place. Kayrros will contribute its data to the newly-launched International Methane Emissions Observatory (IMEO), a global registry that verifies the accuracy of methane reporting at the country and company level. As a result, Kayrros data will help to track the progress on the Global Methane Pledge that commits over 100 countries to reduce their emissions by at least 30% by 2030.

Delivering on this pledge will require decisive action in the energy sector. The good news is that reducing methane emissions is relatively easy. As a starting point, oil & gas companies can eliminate all methane sources above 5 tons per hour –this would have the same impact on the climate as removing 100 million cars from the road. And mining companies, having developed technologies to capture methane emissions to reduce the risk of explosions in underground coal mines, can deploy them not only for safety but also for environmental reasons. Thanks to monitoring satellites, energy companies can reduce their carbon footprint in a cost-effective manner and build trust among regulators, customers and investors.

?Based on all this positive momentum, this is what I expect by the time COP27 negotiators gather at Sharm El-Sheik a year from now:

• ?Capital markets will have started to price methane risk in the energy sector. Financial analysts will be reflecting in their valuation models the risk that some energy companies may lose market access and/or incur higher compliance costs according to the methane intensity of their production.
• Many of the 100+ signatories of the Global Methane Pledge will have provided an interim progress report based on satellite data.
• Even countries that did not sign the pledge will rely on satellite data to update their greenhouse gas inventories.

?I also hope that energy companies will start to integrate satellite data in their sustainability reports. The old method of calculating emissions made sense when there were no other alternatives, but it needs to be phased out in favour of actual measurements. In many cases this will result in an upward revision to previously reported numbers, but the sooner we use accurate data the easier it will be to deliver on decarbonisation targets.

On that basis, the momentum to cut methane emissions will continue into next year and lead to tangible results by the next COP. Is this too optimistic? We will find out soon enough!