Kaj Embren, Senior Advisor | Sustainability & Climate Strategies | Award-Winning Social Media Influencer | Podcaster | Speaker
London, England
Introduction
Methane is stealing the spotlight—and not in a good way.
As climate scientists warn of accelerating warming, a potent but overlooked culprit is quietly fueling the fire: methane emissions from coal mines.
Ventilation Air Methane (VAM)—the dilute but massive volumes of methane released to keep miners safe—accounts for up to 80% of methane from underground coal operations in some regions. And tackling it might just be the next big climate win.
“Cleaning VAM from a single shaft can have the same climate impact as taking two million cars off the road,”
— Richard Mattus, VAM expert.
Yet, despite mature technology and carbon markets, deployment remains scarce. Why? A toxic mix of poor policy leadership and financial hesitation.
Investors Want to Act—But Need Clear Rules
Sean Kidney, CEO of the Climate Bonds Initiative (CBI), agrees that methane needs urgent attention.
“Methane is blowing out our chances of staying on track with CO₂ targets,” he said. “It’s the fastest way to slow near-term warming.”
But there’s a catch. While CBI has launched a methane abatement task force and supports projects that cap flaring and reduce leakage in oil and gas, coal remains politically sensitive.
“No one wants to be seen supporting coal—even if the climate math makes sense,” Kidney explained.
This stigma is a problem. Legacy coal infrastructure, particularly in countries like China and Poland, is currently leaking methane. If we’re not shutting these mines down tomorrow—and most aren’t—then the least we can do is stop the gas from escaping.
Can Methane Abatement Be Green Finance?
CBI’s answer is yes—if it’s done right. They are working to develop guidance and taxonomies for what counts as a credible methane abatement investment.
“It’s about ensuring short-term methane reduction doesn’t extend the life of fossil fuel assets,” Kidney said. “That balance is critical.”
Their strategy? Help investors act with confidence. Most organisations lack the resources to hire climate scientists or the necessary bandwidth for detailed due diligence. What they do have is an appetite for credible, science-backed solutions. Clear investment frameworks—like those CBI develops—are essential to unlocking capital at scale.
China, Europe, and the Global Landscape
China is beginning to act, with regulators incentivising emission reductions in coal mines. Kidney sees promise there—but also the need for more capital to flow in. In Europe, the opportunity lies in policy.
“Including methane abatement in the EU taxonomy would be a game changer,” he said. “It would mainstream investment across Europe and unlock faster action.”
Meanwhile, countries like Canada are already demonstrating the model. Biothermica, a methane capture firm, is turning legacy coal infrastructure into climate value—cutting emissions, generating power, and earning carbon credits.
A Just Transition, Not a Free Pass
The nuance here is key. No one is saying coal is good. The goal is to reduce emissions now while phasing coal out.
“We mustn’t let short-term fixes become long-term lifelines,” Kidney emphasised.
That’s why CBI’s frameworks distinguish between transition investments—those that help reduce emissions on the path to clean energy—and those that prolong fossil fuel dependence. Methane abatement from coal fits the former—when done with clear boundaries.
The Road Ahead: Policy, Guidance, Action
Methane reduction is one of the most immediate levers we have to slow climate change—and VAM abatement is a prime opportunity for action. The technology is ready, the emissions impact is clear, and the financial returns can be significant with the right frameworks in place. What’s missing is decisive action. Investors need clarity, confidence, and credible guidance to move capital at scale.
“The case has been made. What’s needed now is for policymakers and investors to act—fast,” Kidney said.
