my country's methane emission reduction efforts continue to advance, making a "Chinese contribution" to global methane emission reduction.

△Global and Chinese methane emissions (10,000 tons)

my country's methane emissions

According to data from the International Energy Agency (IEA), global and Chinese methane emissions in 2022 were 355.8013 million tons and 55.6761 million tons, respectively, with my country accounting for 15.65% of global methane emissions. In 2022, my country's energy activities emitted 25.3722 million tons, accounting for 45.57%; agricultural activities emitted 18.5019 million tons, accounting for 33.23%; and waste treatment emitted 10.4241 million tons, accounting for 18.27%. Unlike my country, where energy activities are the largest source of methane emissions, globally, agricultural activities are the largest source, emitting 141.9538 million tons in 2022, accounting for 39.90%; followed by energy activities, which emitted 133.351 million tons, accounting for 37.48%.

In my country, coal mining is the largest source of methane emissions from energy activities, with emissions reaching 21.0294 million tons in 2022, accounting for 82.88% of the total. The oil and gas industry emitted 3.3586 million tons of methane, accounting for 13.24%, while bioenergy emitted 984,200 tons, accounting for 3.88%. The emissions from these sub-sectors are shown in the figure below.

△Methane emissions by energy activity segment (10,000 tons)

Progress of my country's Methane Emission Reduction Efforts

Current Status of Methane Emissions Response from Energy Activities

Currently, my country has basically established a sound policy system for the prevention and control of coalbed methane (coal mine gas). Gas concentrations of more than 30% have been relatively fully utilized. However, the utilization of low-concentration gas still faces the dual constraints of low technological maturity and high investment costs, especially the utilization of ventilation gas (concentration below 1%), which often accounts for about 70% of the total methane emissions from coal mines.

As a major coal-producing province, Shanxi's methane emissions on all emission lists are undeniably significantly higher than those of other provinces. Shanxi has been continuously strengthening the comprehensive utilization of coal mine gas, particularly promoting pilot demonstrations of low-concentration methane utilization. It has actively promoted the inclusion of Taiyuan City in the national carbon monitoring and assessment pilot program to conduct high-precision methane monitoring, and promoted three coal mines in Yangcheng County, Jincheng City, as national enterprise carbon monitoring pilot projects, providing technical support for the monitoring and accounting of methane emissions from coal mining enterprises.

Meanwhile, major oil and gas companies actively promoted methane emission reduction. In April 2018, Sinopec launched the "Green Enterprise Action Plan," requiring oil and gas companies to strengthen methane recovery and utilization in associated gas, oil and gas testing, and crude oil gathering and transportation systems. From 2018 to 2022, Beijing Gas Group, ENN Energy, and Hong Kong and China Gas successively joined the Methane Emission Reduction Guidelines (MGP). In June 2020, PetroChina released the "Methane Emission Control Action Plan," setting methane emission control targets. In May 2021, the China Oil and Gas Enterprises Methane Emission Control Alliance was established by six entities: Sinopec, PetroChina, CNOOC, National Pipeline, Beijing Gas, China Resources Gas, and ENN Energy. In June 2021, China Gas became the first Chinese member of the Oil and Gas Methane Partnership (OGMP) led by the United Nations Environment Programme.

Increase emphasis on methane emission reduction in agricultural activities

The main sources of methane emissions from agricultural activities are rice cultivation, animal gut fermentation, and livestock manure. In January 2022, the Ministry of Agriculture and Rural Affairs issued the "Guiding Opinions on Promoting the Construction of Ecological Farms," ​​which proposed exploring low-carbon compensation policies focusing on reducing methane emissions from rice paddies, nitrous oxide emissions from agricultural land, methane emissions from animal guts, and methane and nitrous oxide emissions from livestock manure management. In June 2022, the Ministry of Agriculture and Rural Affairs and the National Development and Reform Commission issued the "Implementation Plan for Emission Reduction and Carbon Sequestration in Agriculture and Rural Areas," outlining key tasks in the crop farming, animal husbandry, and fishery sectors, including reducing methane emissions from rice paddies, reducing the intensity of methane emissions from ruminant animal guts, and reducing methane and nitrous oxide emissions from livestock manure management. The plan listed methane emission reduction in rice paddies as one of the ten major actions.

△my country's policies supporting methane emission reduction

Green finance supports methane emission reduction

In 2007, the Ministry of Finance and the State Administration of Taxation issued the "Notice on Issues Concerning Tax Policies Related to Accelerating Coalbed Methane Extraction," stipulating that the state would temporarily not levy resource tax on coalbed methane extracted from the ground. In June 2020, the China Banking and Insurance Regulatory Commission (CBIRC) issued the "Green Financing Statistical System," which included projects related to the collection and emission reduction of methane and other greenhouse gases from various fugitive emissions during industrial production within the scope of green financing support. In August 2021, the People's Bank of China (PBOC) issued the "Green Loan Statistical System," which included the construction and operation of coalbed methane (coal mine gas) extraction and utilization facilities within the scope of green loans. In April 2021, the PBOC, the National Development and Reform Commission (NDRC), and the China Securities Regulatory Commission (CSRC) jointly issued the "Green Bond Support Catalogue (2021 Edition)," which included activities that reduce methane emissions, such as the equipment for methane leak detection and repair, the development or comprehensive utilization of low-concentration methane, the manufacturing and trading of equipment for the resource-based and harmless utilization of waste products such as biogas from kitchen waste and agricultural and forestry waste, and the construction and operation of facilities for biogas production from livestock and poultry manure, within the scope of green bond support. In November 2022, the Ministry of Ecology and Environment issued the "Reference Standards for Inclusion of Climate Investment and Financing Projects in Pilot Climate Investment and Financing Areas", which included projects that reduce methane escape emissions in the scope of climate investment and financing support.

While my country has made some progress in the utilization of methane resources, methane emission control still faces challenges such as a weak foundation in statistical monitoring and an incomplete legal and standard system. Technical and management capabilities urgently need improvement. "Taking more forceful measures to effectively enhance basic capabilities in methane emission statistical accounting and monitoring, gradually establishing a policy, technical, and standard system for methane emission control, and strengthening technology promotion and demonstration" has become a consensus among industry professionals.

Some content and data sourced from: IIGF