Why governments are focusing more on carbon tax than methane tax?
Methane is a powerful greenhouse gas with a 100-year global warming potential 28-34 times that of CO2. Measured over a 20-year period, that ratio grows to 84-86 times.
About 60% of global methane emissions are due to human activities. The main sources of anthropogenic methane emissions are the oil and gas industries, agriculture (including fermentation, manure management, and rice cultivation), landfills, wastewater treatment, and emissions from coal mines. Fossil fuel production, distribution and use are estimated to emit 110 million tonnes of methane annually.
But, ever wondered why governments favour carbon taxes over methane taxes? It’s a puzzling question – if methane is more harmful, why does it seem to take a back seat? And, what if the government implemented measures to tackle methane? How would this affect the economy and people? As we confront this global issue, we’ll be exploring all possible solutions.
In this article, we’ll cover;
- Why methane takes second place over Carbon Tax
- Share two success stories of countries addressing methane emissions
- What to do in the meantime?
Why methane takes second place?
Carbon dioxide reigns supreme as the most abundant greenhouse gas, responsible for 80% of emissions. But, don’t be fooled, methane still plays a significant role in climate change. Taxes are used by governments and society to change behaviours by either incentives or punishing market participants. There’s no sugar-coating it – methane taxes would be a complex process to implement. But let’s face the harsh truth – if we don’t change our ways, what future do we have? Make no mistake – efforts to reduce methane emissions are still critical in the fight against global warming, but there’s no right side to this discussion, only the pressing need for action. So, what hinders methane tax implementation?
- The technical difficulties
Taxing carbon is generally considered a more straightforward way to generate revenue compared to taxing methane, which can be more challenging. The answer lies in the fact that carbon dioxide mostly comes from burning fossil fuels, so taxing those fuels is an effective way to reduce emissions. On the other hand, methane comes from a range of sources, making it difficult to apply a universal effective taxation system. Plus, measuring methane emissions can be tricky because the source of emissions varies vastly.
- The impact on the economy
While carbon taxes have been introduced in many countries and have proven to be effective, there are concerns that adding methane taxes on top of those could negatively impact the economic growth and the primary emitting sectors which include the sensitive food and the waste sector. Governments may be hesitant to introduce a new tax that could potentially harm economic growth, especially after the COVID-19 pandemic.
Local & Global Success Stories
There are many more hindrances to be discussed, but despite the impact on the economy and its technical difficulties, countries in a position to effect change, do.
Some examples of successful efforts to address methane emissions.
- Denmark: In 2020, Denmark committed to reducing its methane emissions by 70% by 2030. The country plans to achieve this through improved waste management practices and the promotion of biogas production. For more information download this pdf.
In South Africa, there have been several efforts to address methane emissions, particularly in the coal mining sector, which is a significant source of methane emissions in the country. Here are a few examples:
- Methane to Markets Program: Through this program, South Africa has implemented a range of measures to reduce methane emissions, including capturing and using methane for energy generation. For more information download this PDF.
- Ban on Organic Waste to Landfill – The Western Cape dumps around 7.7 million tons of waste every year, 40% of which is organic waste. The Western Cape government put together an ambitious plan to eliminate organic waste from the province’s landfills by 2027. The plan aims to halve organic waste dumped in landfills by 2023.
Overall, while there is still much work to be done, South Africa has taken significant steps to address methane emissions in the coal mining sector and is exploring various technologies and strategies to further reduce these emissions in ways that make it accessible, and that do not have a negative impact on our economy.
What to do in the meantime?
We can’t fight climate change alone! To make a real impact, action is necessary, and collaboration is key. Whether you’re an individual changing your mindset or an organisation shifting your routines, we must work together to combat climate change.
As an individual, you can also take steps to reduce your own methane emissions. For example, reducing food waste can help reduce methane emissions from landfills.
As an organisation, supporting companies and other organisations that prioritise sustainability and environmental responsibility can help promote the use of cleaner technologies and reduce methane emissions. This can involve researching and choosing products and services that are produced in an environmentally conscious way, as well as advocating for sustainability practices in the workplace and in one’s community.
Finally, staying informed and engaged on issues related to methane emissions and climate change can help drive progress and encourage action from policymakers and the public.
To bring this to a close
We have taken you through how implementing methane taxes is a complex challenge. However, some countries are taking successful steps to reduce them. In the meantime, individuals and organisations can take action to reduce their own emissions and support sustainability practices. Don’t forget, collaboration is key in the fight against climate change.
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References
https://www.imf.org/external/pubs/ft/wp/wp9873.pdf
http://www.sustainable.org.za/userfiles/waste%20to%20energy%202(2).pdf
