Methane credits have spent years in the background of the voluntary carbon market, but 2025 has marked a clear turning point. As temperatures continue to climb, with last year the first time the planet stayed above 1.5°C for a full year, buyers are moving toward solutions that can slow warming quickly. This is where methane comes in. With more than 80 times the warming power of carbon dioxide in its first 20 years, cutting methane delivers climate benefits almost instantly.

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Market Momentum in 2025

The market data reflects this shift. According to AlliedOffsets, overall carbon credit issuances are down about 10% from the 2022 peak, yet methane credits are up 35% over the same period. Single month retirements in mid 2025 already surpassed the total from all of 2023. That is extraordinary acceleration in a market that has often moved cautiously.

Independent carbon ratings agencies have reinforced this trend. Calyx Global has rated methane projects including landfill gas capture among the highest quality credits available. The Integrity Council for the Voluntary Carbon Market has included methane methodologies in its Core Carbon Principles, signaling to buyers that these projects meet rising standards for integrity.

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What Buyers Are Looking For

The growth in methane reflects a broader shift in buyer behavior. Companies are increasingly seeking credits that deliver near term results while still fitting into long term net zero strategies. Methane offers a unique combination of immediate measurable climate benefits and a higher degree of permanence than many nature based solutions. By shutting down methane leaks at their source, projects avoid the reversal risks of fire, drought, or soil carbon loss that can complicate other credit types.

Buyers are also looking for portfolio diversification. With nature based credits under scrutiny and engineered removals still costly and scarce, methane sits in the middle. It is high integrity, scalable, and available now. For large corporates trying to balance speed, cost, and credibility, it is emerging as a natural complement to both removals and conservation.

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Beyond Carbon: Why Methane Matters Locally

Methane rarely comes alone. Oil and gas wells, landfills, and other sources often release a mix of pollutants including volatile organic compounds, benzene, and nitrogen oxides alongside methane. These co-pollutants are linked to respiratory illness, premature birth, and even cancer. That means tackling methane also reduces other harmful gases that directly affect the health of nearby communities.

The benefits go further. Projects that capture or prevent methane emissions can restore land for agriculture, conservation, or redevelopment. They often require specialized labor, creating skilled local jobs. For communities long burdened by aging infrastructure or poorly managed waste sites, the impact is both immediate and visible.

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Looking Ahead to 2026

All signs point toward further acceleration. Methane credits remain less than one percent of total retirements, meaning the runway for growth is significant. Policy signals are reinforcing demand, from new US EPA methane rules to the European Union’s efforts to account for emissions from abandoned coal mines. At the same time, corporate buyers are under pressure to show near term progress, not just long term pledges.

The voluntary carbon market has often been criticized for moving too slowly, but methane shows what happens when integrity, urgency, and demand align. As we move into 2026, methane credits are positioned to play an outsized role in shaping the next chapter of corporate climate action.

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