Global methane pricing for climate mitigation: A comparative policy analysis of emerging pricing mechanisms and equity implications

Methane (CH۴) has been receiving increased attention in global climate policy, owing to its high short-term global warming potential and contribution to human-induced climate change. While methane mitigation is increasingly addressed through sector-specific standards, monitoring requirements, and implementation within the wider context of greenhouse-gas pricing initiatives, explicit methane pricing remains limited. This paper presents a comparative qualitative analysis of new approaches to methane pricing in the United States, Denmark, the European Union, Norway, New Zealand, and Canada based on policy documentation, legislation, government reports and studies, expert interviews, and literature. It discusses the design, institutional characteristics, and equity considerations of methane pricing approaches, including variations in legal scope, sectoral reach, measurement, administrative costs, and distributional effects. This research suggests that different approaches to assigning an economic cost to methane emissions (i) include methane within broader greenhouse-gas or carbon-pricing initiatives, (ii) impose methane-specific charges, fees, or taxes on individual activities and sectors, or (iii) use market mechanisms that generate economic incentives for methane reduction. The analysis finds that all these are constrained by their legal scope, measurement requirements, institutional complexity, and legitimacy considerations. We observe that the increased international climate policy interest in methane as exemplified by the Global Methane Pledge has not yet translated into effective methane pricing. Robust measurement, reporting, verification, and enforcement, industry-specific institutional capacities, redistribution of revenue, targeted use of fees and taxes, and technical and financial assistance can help to increase political acceptability. This paper argues that methane pricing must complement standards, measurement, technology-based solutions, and international cooperation in a comprehensive methane governance structure.

کلیدواژه ها:

Methane pricing ، Climate policy ، comparative analysis ، Climate governance ، Just transition