Methane is a “super pollutant” – a short-lived but extremely potent greenhouse gas that amplifies global warming at 80X the rate of CO2 over a 20-year period. That potency comes with an upside: reducing methane emissions now can have major, near-term impacts on climate action.
Methane reduction projects can deliver measurable, high-integrity credits with immediate results to boost your company’s carbon offset portfolio. And they provide local air quality benefits that other carbon credits can’t.
The “Ugly Duckling” of the Carbon Market
Methane reduction projects have been historically overlooked in the voluntary carbon market (VCM), passed over for “charismatic” projects that have notable visual or emotional appeal at the expense of higher-impact initiatives. A 2024 analysis from Calyx Global found its higher carbon credit ratings were populated largely by “uncharismatic” projects, such as landfill methane, and the lower ratings by charismatic ones, such as forest conservation.
Since 2004, methane credits have retired approximately 19 million tonnes of CO2e – a mere fraction (less than 1%) of the estimated 4 billion tonnes of CO2e retired by the VCM as a whole.
This is changing. In the last year, methane credit retirements increased more than 70%. They are one of the fastest-growing credit types retired from the VCM.
Ranging from landfill gas capture to agriculture and oil and gas initiatives, methane reduction projects offer a highly efficient way to mitigate climate change. Project developers that specialize in methane reduction are increasingly active in the VCM, led in 2024 by Energy Systems SA and Anew, both of whom work in the landfill management space.
Other leading developers include P.C.E. Energy Technology, Republic Services Alliance Group, Sichuan Furong Group, New River Resource Authority, Steuben County DPW, Rebellion Energy, Loci Controls, and Tradewater.
Though landfill gas has traditionally been the #1 project type for retired methane credits, additional project types are springing up and gaining momentum, including manure management, agriculture, wastewater treatment, leak detection and repair, coal bed methane, and ClimateWells’ specialty - shutting down oil wells.
Who’s buying?
Since methane credits perform well on permanence and other key indicators of high-quality credits, companies are investing in these project types in growing numbers. Some players have been in the game for years. In the last two decades, however, the largest methane credit purchasers have included Interface, NW Natural, Delta Airlines, Shell, Boeing, Maple Leaf Foods, UPS, Civitas Researchers, Easyjet, and PG&E.
In 2024, Civitas Resources topped the charts for retired methane credits, sharing in its 2024 CSR report that its carbon offset portfolio prioritizes methane-eliminating projects. 61% of Civitas’ carbon credits focused on landfill methane in 2023.
Another leader is Maple Leaf Foods, which just celebrated five years as the first major carbon-neutral food company in the world. Part of its strategy: projects focused on landfill methane.
Purchasers also continue to expand their portfolios beyond landfill methane; we collaborated with JPMorgan Chase in 2024 on a methane project shutting down old oil wells in Los Angeles.
Liftoff in 2025
As the voluntary carbon market evolves, methane reduction projects are set to play an increasingly pivotal role. With their fast-acting benefits, they represent a critical tool for organizations aiming to combat climate change. As as more buyers and sellers enter the market, the writing is on the wall: investing in methane reduction is an essential component of a robust carbon offset portfolio in 2025.
