Sustainable Markets Initiatives in Action

SMI Pathfinders

    Pathfinders

    Pathfinder

    Methane (Energy)

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    Pathfinder Methane

    Methane is one of the most potent near-term greenhouse gases, with more than 80 times the warming power of CO₂ over a 20-year period. The oil and gas sector accounts for approximately 40% of global methane emissions from human activity, making it one of the highest-impact levers available for near-term climate action.

    The Oil & Gas Decarbonization Charter (OGDC), launched at COP28, unites companies representing over 40% of global oil and gas production, committing to near-zero methane emissions and ending routine flaring by 2030, and net-zero operations by 2050. The SMI is uniquely positioned to accelerate the shift from commitments to implementation — connecting producers, financiers, technology providers, and policymakers to deliver measurable methane reductions at pace.

    Problem statement

    • Fragmented coordination and absence of a shared delivery architecture: Delivering on methane targets requires aligned action among oil and gas producers, technology providers, financiers, policymakers, and host country governments, yet stakeholders consistently operate in silos.

    • Insufficient financing and bankable project pipelines: Achieving a 75% reduction in methane emissions requires around $15 billion in annual investment through 2030, yet external financing currently stands at less than $1 billion.

    • Weak regulatory and policy frameworks in key producing countries: In high-priority countries such as Nigeria, Iraq, and Turkmenistan, carbon markets, NDCs, and compliance mechanisms are still maturing, constraining project development and foreign investment.

    Implementation pillars

    1. OGDC Expansion & National Oil Company Engagement

      Expanding OGDC membership and encouraging National Oil Companies to join, implement, and report against commitments is the primary lever for driving sector-wide methane reduction, leveraging the SMI’s access to heads of government and NOC leaders.

    2. Financing & Bankable Business Cases

      The SMI will work with OGDC to define a financing framework enabling smaller projects access to capital across the stack, developing a financing suitability framework and identifying pilot projects to test and prove its application.

    3. Technology Innovation

      Transparent and credible measurement is foundational to methane progress. The SMI will advocate for standardised reporting frameworks such as OGMP 2.0 and explore innovative measurement and monitoring in collaboration with satellite and technology companies. The SMI will define a ‘menu’ matching projects with practical support, technology solutions, technical capability, finance, and insurance in key markets, including priority Commonwealth countries.

    4. Measurement, Showcasing & Amplification

      The SMI will recognise companies and countries demonstrating significant methane reduction efforts, supporting the UK Government’s High Ambition Statement on Methane, and showcase leading efforts annually across stakeholder groups via traditional media, SMI platforms, and SMI Roundtables & Exhibition.