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ESG POLICY & STRATEGY

Methane Reduction Is Profitable, So Why Are Investments and Repairs Delayed?

The IEA's Global Methane Tracker 2026 shows that even when emissions can be reduced with no net cost, initial capital, contracts, and operational capacity can still prevent execution. This article distinguishes between potential reduction volumes and actual performance while analyzing the connection between cost burdens and recovered value.

김민경 책임기자Published 2026년 10월 20일Updated 2026년 10월 20일
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Methane Reduction Is Profitable, So Why Are Investments and Repairs Delayed?

The explanation that reducing methane allows companies to recover gas that can be sold or used is attractive. The 'Global Methane Tracker 2026,' published by the International Energy Agency (IEA) on May 4, 2026, estimated that applying average 2025 energy prices would allow more than 35 million tons of methane emissions in the fossil fuel sector to be reduced at zero net cost. However, the same report notes that emissions remain at high levels. Why is execution not fully taking place despite the existence of seemingly economically advantageous opportunities? Explaining this question solely through a lack of technology misses the issues of investment and operations. Even if the value of the recovered gas can compensate for costs over the long term, upfront capital is required to purchase equipment initially, and the entity bearing the costs may differ from the entity reaping the benefits.…

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