Why Policymakers Must Act on Coal’s Methane Problem—Now

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Kaj Embren,  Senior Advisor | Sustainability & Climate Strategies | Award-Winning Social Media Influencer | Podcaster | Speaker
London, England 

Coal is slowly exiting the global stage—but not quietly. Even as consumption falls in parts of the world, it remains entrenched in Asia, Eastern Europe, and parts of the U.S. Beyond the well-known carbon toll, theres a potent and largely overlooked threat: methane leaking from active underground mines.

The biggest culprit? Ventilation Air Methane (VAM)—a dilute, continuous stream released through mine ventilation systems. In some countries, VAM accounts for up to 80% of coal minings methane emissions. That makes it a major climate risk—and a massive opportunity.

The Tech Exists. The Economics Don’t—Yet.

VAM can be safely destroyed using proven systems like regenerative thermal oxidizers (RTOs). Whats missing is the economic incentive. Without strong policy signals, investors have little reason to back VAM projects. But that can change.

Three Policy Levers to Flip the Script

1. Tax Breaks That Drive Deployment
Capturing VAM isnt speculative—its a finance problem. Governments can tip the scales with:

  • Investment tax credits and accelerated depreciation for VAM systems
  • Production-linked credits for verified methane abatement
  • National and EU-level grants to cut upfront risk

2. Carbon Pricing That Counts Methane
Methane is 84 times more powerful than CO over 20 years, but most markets dont reflect that. If carbon pricing systems properly valued methane:

  • One tonne abated could yield €7,000+ in avoided emissions
  • VAM destruction could become a lucrative climate service
  • Policymakers could drive this with GWP20 accounting and mine-level crediting

3. Regulations That Set the Bar
Smart, phased standards can shift markets. Think Canadas 75% methane cut target in oil and gas—now apply that to coal. Key moves:

  • Mandatory methane reporting from all coal mines
  • Intensity limits that ratchet down over time
  • Requirements to adopt best-available tech in high-emitting sites

Europe: A Missed Opportunity—For Now

Despite its climate leadership, the EU has yet to seriously target VAM. Including it in the EU ETS, leveraging the Innovation Fund, and aligning with Fit for 55 could turn this around—fast. The payoff? Gigaton-scale cuts and clean-tech jobs in regions like Poland, Romania, and Germany.

For Investors: High Impact, Low Competition

VAM isnt crowded. Thats part of the appeal. With COP pledges, methane disclosure rules, and ESG mandates gaining ground, this is a sweet spot for climate-minded capital. The ROI isnt just financial—its planetary.

The Bottom Line
Methane from coal mines is a climate time bomb. But its also a rare climate win waiting to happen. The tech is ready. The solutions are known. Whats missing is political will and financial momentum.

VAM is more than a footnote in the climate story. It’s a sleeping giant—and waking it up could deliver one of this decades smartest, fastest climate wins.

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