Pillar 1

Executive Summary

Introduction

1.1 Sign up to international goals and targets

1.1.1 Paris Agreement

1.1.2 Global Methane Pledge

1.1.3 Global Renewables and Energy Efficiency Pledge (COP 28)

1.1.4 Sustainable Development Goals

1.2 Set national climate commitments

1.3 Identify milestones via emission budgets

1.4 Set sector-based targets

1.4.1 Renewable energy targets

1.4.2 Agricultural emissions targets

1.4.3 Waste management targets

1.4.4 Water management targets

1.5 Align financing to climate goals

1.5.1 Remove fossil fuel subsidies

1.5.2 Divest from fossil fuel projects

1.5.3 Restrict the expansion and exploitation of fossil fuel reserves

1.6 Fund climate mitigation and adaptation

1.6.1 Climate investment law

1.6.2 Funding strategy for climate action plan

1.6.3 Invest in infrastructure to support feedstock collection and use of biogas

1.6.4 Encourage private investment in infrastructure

1.6.5 Access international funding

1.7 Identify feedstocks and biogas potential

1.8 Set biogas generation targets and methane leakage mitigation standards

1.9 Recognise anaerobic digestion as a preferred technology for waste recovery

1.10 Identify priority use for biogas and coproducts

1.11 Establish an emissions trading scheme

1.11.1 Include methane in emissions trading schemes

1.11.2 Incorporate methane as a short-lived climate pollutant

1.11.3 Include anaerobic digestion technology for emission credits

1.11.4 Include other GHGs in emissions trading

1.11.5 Link to other climate initiatives

1.12 Develop and balance grid

1.12.1 Grid modernisation

1.12.2 Capacity markets

1.12.3 Demand response programmes

1.12.4 Performance-based grid regulation

1.12.5 Grid code requirements

1.13 Support microscale/household digesters

1.14 Develop green skills and training programmes

1.15 Support gender equality through the biogas industry

1.16 Looking forward

 

 

 

 

 

Executive Summary

Pillar 1 on International and National Policies highlights how international agreements and national policies inherently support anaerobic digestion (AD) as a critical solution to address climate, energy, and food security challenges simultaneously. It emphasises the alignment of global commitments with national and sector-specific policies to develop and scale the biogas industry rapidly. It identifies actionable policies that enable the biogas industry to thrive, including modernising infrastructure, fostering capacity building, setting realistic targets, and creating enabling environments for sectoral growth. Examples from around the world illustrate successful policy practices, including financing mechanisms that bolster investor confidence by leveraging carbon markets and government funding.

Adopting the key elements of Pillar 1 would empower countries to establish the necessary policies to meet their commitments to emissions reduction, renewable energy, sustainability, and waste management. This includes advancing key global initiatives such as the Sustainable Development Goals (SDGs), the Paris Agreement, and the Global Methane Pledge. 

The proposed policy recommendations are ambitious yet adaptable, designed to accommodate the unique circumstances of individual countries at the national and sub-national levels.

Conclusion

Pillar 1 offers comprehensive best-practice policy options globally for nations to adapt and align their existing policies with international climate commitments while addressing energy, waste management, and sustainability goals. By adopting key elements of these policy recommendations, governments can unlock the full potential of their biogas industry, driving economic growth, enhancing climate resilience, and improving quality of life at the local level.

 

PILLAR 1: International and National Policies

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Introduction

The biogas industry needs a suite of international and national commitments and policies to set the intent, direction and pace for growth. These policies that support the biogas industry also contribute to:

• reducing greenhouse gas (GHG) emissions, mitigating climate change
• using organic waste as feedstock, helping to avoid pollution to air, water and soils, while improving health and sanitation
• creating a new generation of fertilising products, helping to improve soil health and agricultural production
• supplying renewable dispatchable energy, helping to decentralise energy generation, provide for energy security and independence in regions (such as in rural areas) and nations where energy supplies can be erratic or dependent upon imported fossil sources
• replacing fossil fuel consumption (oil and gas) and taking part in carbon mitigation (providing carbon market alternatives).

By committing to these targets and adopting policies that will support their delivery, governments will signal an acknowledgement of the benefits of the biogas industry can deliver and a necessity for public and private investment in the industry. The following elements may be included in these policies.

 

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1.1. Sign up to international goals and targets

At the international level, agreements such as the Paris Agreement and Sustainable Development Goals (SDGs) foster a collective commitment among nations to undertake significant measures to reduce emissions and improve the environment and the quality of people’s lives. International policies set the stage for collective action, while national policies drive implementation at the local level, ensuring that global commitments are translated into tangible outcomes.

1.1.1. Paris Agreement¹

The Paris Agreement is a legally binding international treaty on climate change that aims to ‘hold the increase in the global average temperature to well below 2°C above pre-industrial levels’ and pursue efforts ‘to limit the temperature increase to 1.5°C above pre-industrial levels’.

Figure 1 shows the sources of global greenhouse gas (GHG) emissions.² Of these sources, the biogas industry can mitigate emissions from energy, livestock and manure, agricultural soils, crop burning, deforestation, landfills and wastewater. World Biogas Association (WBA) analysis show that the biogas industry has the potential to mitigate 10–13% of global GHG emissions.³

Figure 1: Global GHG emissions by sector

Given the extent to which the industry can mitigate emissions, biogas must be included in the Paris Agreement’s Nationally Determined Contributions (NDCs) or country-specific climate action plans that are developed by countries to reduce GHG emissions and adapt to climate impacts. Biogas can play a significant role in NDCs by offering a renewable, low-carbon energy source that helps achieve emission reduction targets, improve waste management and promote sustainable agriculture.

Offsets provided by the biogas industry can also be integrated into Article 6 of the Paris Agreement, which is crucial for supporting international cooperation on carbon markets, allowing countries to achieve their NDCs by trading emission reductions. Biogas projects can be included for emission reduction, but these must, however, be supported by a robust, internationally agreed lifecycle assessment methodology as well as wider sustainability criteria.

Article 6 also lays down a framework to promote non-market cooperation among signatories, such as technology transfer and capacity-building for climate action.

By signing up to the Paris Agreement, committing to nationally determined targets and using the international cooperation frameworks within it, countries can set the overall course of climate mitigation in tandem with the biogas industry.

The Paris Agreement is now binding and approved by 195 parties (194 countries plus the European Union): almost all of the world’s nations.⁴

1.1.2. Global Methane Pledge⁵

The short-lived, high-climate-impact of methane emissions was recognised at COP26. Reducing methane emissions is recognised as the single most effective strategy to achieve the goal of limiting global warming to 1.5°C. By signing up for the Global Methane Pledge launched at COP 26, nations agree to contribute to the collective effort to reduce global methane emissions by at least 30% from 2020 levels by 2030.

Reduction of methane emissions from organic waste, manure and landfills is central to the anaerobic digestion (AD) industry. WBA analysis shows that the industry has the potential to deliver nearly 50% of the Global Methane Pledge.⁶ It is, therefore, imperative for nations to sign up to the pledge and include the biogas industry in their methane-reduction strategies.

One hundred and fifty-five nations have signed the Global Methane Pledge; these nations account for approximately half of planetary anthropogenic methane emissions.⁷ Supplementing the work under the Global Methane Pledge, the Declaration on the Elimination of Methane from Organic Waste (COP29) requires that signatories’ national climate policies set concrete targets to reduce methane from waste and food systems, aligning with the 1.5°C goal. Signatories commit to launching concrete policies and roadmaps to meet these sectoral methane targets ahead of COP30 in Brazil.

1.1.3. Global Renewables and Energy Efficiency Pledge (COP 28)⁸

Fossil fuels represent 80% of the total energy supply of the world and are responsible for nearly two-thirds of current GHG emissions.⁹ While several technologies are available for generation of renewable electricity, biogas is the most feasible and the only established source of renewable gas.

For the transition to renewable energy to happen at pace, it is essential to commit to tripling renewable energy capacity by 2030 and doubling the annual rate of energy efficiency improvements every year until 2030, via the Global Renewables and Energy Efficiency Pledge. Biogas needs to be included in renewable energy generation plans for holistic energy decarbonisation.

1.1.4. Sustainable Development Goals

In September 2015, the United Nations adopted 17 aspirational Sustainable Development Goals (SDGs) and 169 targets to end poverty and hunger in all its forms, protect the planet from degradation, and ensure prosperous, fulfilling and peaceful lives for all, to be realised through a global partnership. The world has, however, fallen behind, with half of the targets moderately or severely off-track, and over 30% have either seen no movement or regressed below the 2015 baseline.¹⁰

Each country needs a commitment to accelerated, sustained and transformative action to deliver on the commitments. Biogas can contribute to 11 of the 17 SDGs.¹¹

Goal 2: End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Goal 3: Ensure healthy lives and promote well-being for all at all ages

Goal 5: Achieve gender equality and empower all women and girls

Goal 6: Ensure availability and sustainable management of water and sanitation for all

Goal 7: Ensure access to affordable, reliable, sustainable and modern energy for all

Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all 

Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialisation 

Goal 11: Make cities and human settlements inclusive, safe, resilient and sustainable

Goal 13: Take urgent action to combat climate change and its impacts

Goal 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

Goal 17: Strengthen the means of implementation and revitalise the global partnership for sustainable development.

1.1.4.1 Affordable and clean energy targets

According to the Sustainable Development Goals Report (Special Edition 2023), 675 million people lack access to electricity and 2.3 billion people, or 29% of the world population, still rely on inefficient and polluting cooking systems, such as direct burning of fuelwood, charcoal, agricultural waste and animal dung. Using these as fuels has an adverse effect on health, the environment and economic development. It is estimated that lack of clean cooking contributes to 3.5 million premature deaths, primarily women and children.¹²

Microscale AD can play a significant role in generating decentralised clean energy from waste and agriculture. Governments must, therefore, set targets for access to energy and clean cooking fuel to all and include biogas in their strategies to deliver these targets. These are discussed in further detail in section 1.10 below.

1.1.4.2. Food waste and loss strategy

While a staggering 828 million people faced hunger worldwide in 2021, 13.2% of food produced was lost after harvest in the supply chain, and an additional 17% wasted at the consumer end.¹³ This waste of energy and resources must be tackled urgently through policies, infrastructure and awareness. Governments must lay out a clear strategy to minimise food waste and losses. Only waste that is unavoidable should be allowed to be treated via AD for the recovery of energy and nutrients.

These are discussed in detail under Pillar 2: Feedstock Policy.

1.1.4.3. Clean water and sanitation policies

Only 58% of household wastewater is safely treated globally, and many countries lack sufficient data on wastewater management. Reporting is particularly low for industrial sources. Over 3 billion people live in areas where the quality of fresh water is unknown.¹⁴ This poses a significant risk as agricultural run-off and untreated wastewater can contaminate water supplies, harm ecosystems and pose serious health hazards to communities.

Countries must commit to implementing comprehensive monitoring systems, enforce strict wastewater treatment regulations and adopt an Integrated Water Resources Management (IWRM) approach.¹⁵

AD is a key part of domestic and high organic industrial wastewater treatment technology. Regulatory and policy frameworks for wastewater must support and encourage the AD of wastewater to safeguard people and the environment. Promoting circularity through the reutilisation of digestate as fertiliser or soil improver and preventing sludge from being disposed of in landfills (which could result in significant environmental disasters).

This is discussed further in Pillar 2: Feedstock Policy, Pillar 4: Digestate Policy, and Pillar 7: Environmental Permitting.

1.1.4.4. Social Advancement and Collaboration

A growing biogas industry drives sustainable economic growth and creates skilled jobs across the value chain in plant construction, operation, equipment manufacturing, maintenance and certification. Advancing the biogas sector can also foster robust partnerships across sectors as the industry scales to achieve its potential, including cross-country knowledge sharing, public-private partnerships and global financing initiatives.

 

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1.2. Set national climate commitments

Through the adoption of national climate strategies, countries set their own targets and adopt policies that reflect the unique economic, social and environmental contexts of their country, allowing for tailored approaches to climate change mitigation and adaptation.

As signatories to the Paris Agreement, 195 parties have set an intention to reduce their GHG emissions to limit global temperature below 2°C above pre-industrial levels. However, the commitments vary on the GHGs considered (carbon dioxide or all GHGs, with and without minimum reduction targets), the timelines in which these reductions will be achieved (ranges from 2030 to 2070), the enforceability of the commitment (set in law, is included in a policy document, is a pledge or declaration, or is in discussion) and the setup or absence of carbon neutrality targets.¹⁶

As per the Emissions Gap Report published by the United Nations Environment Programme (UNEP) in 2023, the known commitments from countries are not enough to keep the increase in global temperature below 2°C, and hence not enough to achieve the Paris Agreement.¹⁷ 2024 was Earth’s warmest year since modern record-keeping began around 1880, and the past ten consecutive years have been the warmest ten on record, underlining the need to intensify actions to reduce emissions urgently.¹⁸ The emissions gap needs to be bridged with additional and ambitious commitments.

Carbon neutrality targets, or net zero targets, consider CO₂-equivalent emissions for all sectors. In the case of organic waste, the GHG emission of primary concern is methane. Methane is a Short-Lived Climate Pollutant (SLCP) with a lifetime of 12 years and a 20-year Global Warming Potential (GWP) of 79.7–82.5 ± 25.8. Mitigating methane has become the best option to apply the emergency brake to global warming and achieve carbon neutrality.

To secure reductions in methane emissions, nations need to further strengthen legislative commitments:

• Commit to achieving climate neutrality, which puts more emphasis on tackling all GHG emissions beyond just carbon, i.e. achieving net zero GHG emissions (not just carbon dioxide) by balancing unavoidable emissions so they are equal (or less than) the emissions that get removed through the planet’s natural absorption. 

 

EXAMPLES

Finland has set a target to become carbon neutral by 2035.¹⁹

The EU has set a target to be climate neutral by 2050, with interim targets of 55% reduction in net GHG emissions relative to 1990 by 2030, and 90% by 2040.²⁰

 

• Commit to achieving a minimum reduction in emissions, after which carbon capture or offsets will be considered. This will ensure a systemic change in consumption patterns, design, efficiency and technology with limited reliance on offsets.

 

EXAMPLE

Sweden has committed to achieving net zero GHG emissions by 2045, such that emissions of GHGs from Sweden must be at least 85% lower in 2045 than they were in 1990. The remaining 15% can be achieved through other measures, such as carbon capture or emission reduction in different countries.²¹

 

• Once climate neutrality has been achieved, commit to remaining emissions-negative for all time to come.

 

EXAMPLE

Bhutan has pledged to remain carbon neutral for all time to come.²²

 

• Set targets for negative emissions.

 

EXAMPLE

Sweden has committed to negative emissions.²³ No country is known to have set numerical targets for net negative emissions yet.

 

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1.3. Identify milestones via emission budgets

Emission budgets are caps on the amount of GHGs emitted in the country over a five-year period. Breaking down the long-term net zero commitment into mid-term milestones that are legally binding via budgets ensures that a mechanism is in place to monitor progress on emission reduction.

These budgets are most effective when monitored, reported, reviewed and updated based on the progress made. All policy decisions made by the government must be in line with these commitments and emission budgets. If the emission budgets are exceeded, a process to scrutinise policy must be put in place to inform future decision-making. 

 

EXAMPLE

Carbon budgets are mandatory in Chile for seven sectors of the economy, including the waste sector, as established by the country’s Climate Change Framework Law. Carbon budgets are estimated based on the NDC target and are detailed in Chile’s Long-Term Climate Strategy (ECLP).²⁴

Brazil submitted their new NDC at COP29²⁵ committing to a 59 to 67% emissions reduction by 2035, and it will present the sectoral carbon budgets in its Sectoral Action Plan (in Portuguese, Plano Clima), ahead of COP30 (2025),. ^{26 27}

The UK has legislated for six legally binding carbon budgets leading up to 2037.²⁸

 

Figure 2: UK Climate Change Committee recommended sixth carbon budget²⁹

Source: UK Climate Change Committee (2020)

 

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1.4. Set sector-based targets

National policies and targets can be further broken down into sector-based targets so there is a clear and consistent pathway to delivering climate commitments. AD of waste not only mitigates GHG emissions but also promotes energy security, food security, health and sanitation via waste management and improves air and water quality. It therefore falls into a number of sectors, and a holistic approach is needed to make the most of its benefits.

1.4.1. Renewable energy targets

Renewable sources of energy, such as sun, wind, water, geothermal, agricultural residues and organic waste contribute to GHG emissions’ reduction. These sources are available locally in variable quantities and at different times.

AD uses agricultural residues, organic waste and purpose-grown crops to generate biogas – a renewable source of energy that can be used to meet local energy needs, e.g. burning for cooking fuel or to generate heat and electricity, or it can be upgraded to biomethane for use in transport or heating homes.

Biogas is the only source of renewable gas that is currently technologically and economically feasible.

Setting specific targets for the generation of renewable energy is therefore necessary to tackle emissions from energy generation and move away from fossil fuels. It is also essential to include biogas in these renewable energy targets, to replace fossil gas, mitigate climate change, provide energy security, support the local economy and create jobs. 

 

EXAMPLE

California has committed to moving the state to 100% clean energy by 2045, with a 40% reduction in emissions by 2030 compared to 1990.³⁰

 

1.4.2. Agricultural emissions targets

Emissions from agriculture arise from enteric emissions from livestock, manure management, the production and use of synthetic fertilisers, crop production, crop residue management and energy use.

The AD of manure from livestock, sustainably grown crops and crop residues can generate the energy needed on-farm, reduce emissions and provide valuable organic fertiliser in the form of digestate. Setting targets to reduce emissions from agriculture is needed to stimulate the biogas industry.

 

EXAMPLES

California has set a target of 40% reduction of methane emissions from the dairy and livestock sector on 2013 levels by 2030.³¹

India has introduced bans on the burning of crop residue supported by subsidies for in-situ and ex-situ management of crop residues.³²

 

1.4.3. Waste management targets

The degradation of organic waste in uncapped landfills—landfills that are not sealed to prevent the release of gases and leachate—leads to methane emissions, a potent greenhouse gas that significantly contributes to climate change. It is estimated that 20% of anthropogenic methane emissions are caused by food and other organic materials left in landfills, open dumps and wastewater.³³ According to UNEP estimates, approximately 40% of waste globally ends up in open dumpsites.³⁴ Dumping and open burning of wastes poses a huge risk to people and the planet from climate change related to methane emissions: diseases such as diarrhoea and malaria; airborne pollutants such as persistent organic pollutants and black carbon leaching into waterways; and fires and landslides.³⁵

The first and foremost recommended policy for any country is, therefore, prohibiting the dumping and open burning of wastes. This must be tightly linked with creating and providing infrastructure to collect and manage waste responsibly.

Setting targets to progressively divert organic waste from landfills, aspiring to a near complete ban of organic waste to landfills, is a policy recommended alongside mandatory capping and collection of landfill gas. These are discussed further in Pillar 2: Feedstock Policy. 

 

EXAMPLES

Environment ministers from 54 African countries have committed to eliminating the open dumping and burning of waste.³⁶

A roadmap for the progressive closure of dumpsites in Latin America and the Caribbean has been published by a voluntary coalition of governments of these countries, with support from UNEP.³⁷

South Korea has enforced a ban on landfilling food waste since 2005.³⁸

The Canadian province of British Columbia has made it a law to cover landfills and capture and flare landfill gas.³⁹

The EU has a landfill directive in place that obligates countries to implement national strategies to progressively reduce the amount of organic and biodegradable waste sent to landfills.⁴⁰

 

1.4.4. Water management targets

Untreated wastewater and agricultural runoff pose significant risks to people and the environment, including aquatic life, animals and biodiversity. Eighty per cent of pollution to the marine environment comes from the land.⁴¹

Countries must mandate monitoring of water quality in all water bodies. It is also recommended that targets for 100% wastewater treatment with AD are set and recognised as part of that treatment process. This is discussed further in Pillar 2: Feedstock Policy. 

 

EXAMPLE

As of 2024, UK has 170 sewage treatment plants that treat close to 90% of the wastewater generated in the country.⁴²

The European Union revised its Urban Wastewater Treatment Directive (Directive 2024/3019) to mandate sewage treatment plants treating a load of 10,000 population equivalents (p.e.) or more to become carbon-neutral by 2045.⁴³

 

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1.5. Align financing to climate goals

Fossil fuel subsidies accounted for $7 trillion or 7.1% of global Gross Domestic Product in 2022.⁴⁴ Despite 195 parties signing and ratifying the Paris Agreement in 2015, fossil fuel subsidies have continued to increase (see figure 3).

Figure 3. Historical and projected fossil fuel subsidies, 2015–2030⁴⁵

Source: International Monetary Fund (2021).

Explicit subsidies have more than doubled from $0.5 trillion in 2020 to $1.3 trillion in 2022. The balance (~60%) was borne in implicit subsidies, undercharging for environmental costs and forgone consumption taxes.⁴⁶ 

1.5.1. Remove fossil fuel subsidies

Subsiding fossil fuels creates distortion in the market that makes it harder for renewable energy technologies to grow. To create a level playing field and for the wider benefit of society, it is necessary for governments to divest from fossil fuels and invest in renewable energy technologies, including AD.

The International Monetary Fund 2023 update estimated that fully reforming fossil fuel prices by removing explicit fossil fuel subsidies and imposing corrective tax could reduce GHG emissions by 34% below 2019 levels, keeping the world in line with the Paris Agreement of well within 2°C global warming and towards 1.5°C, as shown in figure 4.⁴⁷

Figure 4. Global CO₂ pathways for temperature targets, 2023

Source: IMF calculations and IPCC (2021)

Introducing reforms in a phased manner could generate a net benefit of about 3.6% of global GDP and avert 1.6 million premature deaths annually caused by air pollution.⁴⁸

 

EXAMPLE

The IMF has provided guidance for countries on key elements that need consideration when designing subsidy reform.⁴⁹

 

1.5.2. Divest from fossil fuel projects

Governments can lead their countries by example by imposing restrictions on government funding through national banks, pension funds and government owned companies to new and old fossil-fuel-based infrastructure and projects. 

 

EXAMPLE

Ireland’s Fossil Fuel Divestment Act 2018 restricts the investment of Ireland strategic investment funds directly and indirectly in fossil-fuel undertakings.⁵⁰

 

1.5.3. Restrict the expansion and exploitation of fossil fuel reserves

Governments must use their regulatory powers to ban the exploration of new oil and gas reserves and the issuance of new permits for fossil-fuel extraction. 

EXAMPLE

France has imposed an end to all activities of exploration and exploitation of hydrocarbon fossil fuels on French territory, including oil, gas and coal, by 2040.⁵¹

 

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1.6. Fund climate mitigation and adaptation

While expenditure and policy support are withdrawn from fossil fuels, investment is urgently needed in climate change mitigation and adaptation. Countries can transition their spending from subsidising fossil fuels to incentivising renewable and sustainable solutions via legal and policy instruments.

1.6.1. Climate investment law

Enacting laws to provide government funding for climate-related initiatives is a key strategy for addressing climate change and advancing sustainability. These laws allocate public resources to support the development of clean-energy technologies, climate-resilience projects and green infrastructure. Due to the wide-ranging benefits of the industry, biogas projects must be included in specific allocations. 

 

EXAMPLE

The Inflation Reduction Act in the USA allocated $370 billion in investments for clean energy technology, manufacturing and innovation. The law also advances the Justice40 Initiative, which commits to delivering 40% of the overall benefits of climate, clean-energy and related federal investments to communities that are marginalised, overburdened by pollution and underserved by infrastructure and other basic services.⁵²

 

1.6.2. Funding strategy for climate action plan

A national government funding strategy must be developed to allocate resources to support the transition for a climate action plan, including development of the biogas industry. This strategy should direct government and partnership funding toward development of infrastructure; provide policy incentives; foster partnerships; and enforce regulations in the renewable energy, waste management and sustainable agriculture sectors. By strategically mobilising public and private capital, governments can accelerate climate action and meet international climate goals. 

 

EXAMPLE

RePowerEU is the European Commission’s plan to reduce energy consumption, generate renewable energy and increase energy-storage capacity. It will mobilise €300 billion in loans and grants.⁵³

Global development banks have demonstrated financing models for methane-abatement projects. For example, the Inter-American Development Bank supports member countries in Latin America and the Caribbean in mitigating methane emissions from solid waste. This support includes pilot projects to showcase technologies, assess financial feasibility, develop business plans and methodologies, and promote knowledge sharing. ⁵⁴

 

1.6.3. Invest in infrastructure to support feedstock collection and use of biogas

Government investment in infrastructure is essential to support AD plants and the wider use of biogas and coproducts. Biogas plants require efficient systems for waste collection, segregation, treatment and processing, as well as pipelines or distribution networks for transporting biogas to end users and digestate to farmland. Governments can fund the development of this infrastructure as well as the biogas plants. Investment in research and innovation and skilled-workforce development is also crucial to improving biogas technology. By investing in biogas infrastructure, governments can promote a circular economy, reduce GHG emissions and enhance energy security. 

 

EXAMPLE

Nearly 50% of biomethane produced in Sweden was used in transport, and 96% of all compressed gas used in transport was biogas. This targeted growth was facilitated by investment in public and private filling stations, public buses and heavy-duty vehicles.⁵⁵

 

1.6.4. Encourage private investment in infrastructure

In 2022, global private investment in infrastructure projects increased to $424 billion, largely driven by investments in transport, renewable-energy generation, digital infrastructure, and energy storage, transmission and distribution in Western Europe and North America. Investments in waste, water, social and other infrastructures, however, continued to remain low and declined further.⁵⁶ With governments across the globe stretched for funds, policies to unlock and mobilise private-sector investment in the biogas industry is recommended. These can include:

• implementing policy drivers such as mandatory separate food-waste collection, ring-fencing feedstocks for biogas plants and a renewable fertiliser obligation
• offering financial incentives, such as tax credits, subsidies, grants, low interest loans or guarantees for projects
• public-private partnerships (PPPs) that can help share costs and risks, making waste infrastructure investments more attractive
• clear regulatory frameworks and long-term contracts, providing stability and predictability for investors
• fuel quotas/ETS exemptions.

Streamlining planning and permitting processes will also boost investor confidence and boost investment. 

 

EXAMPLE

The Climate Finance Leadership Initiative (CFLI), the Association of European Development Finance Institutions (EDFI) and the Global Infrastructure Facility (GIF) have published a report on private-sector considerations for policymakers, to serve as a starting point.⁵⁷

 

1.6.5. Access international funding

International grant funds provide critical financial resources for climate mitigation and adaptation projects, particularly in developing countries. These funds, such as the Green Climate Fund (GCF), Global Environment Facility (GEF) and Adaptation Fund, support efforts to reduce GHG emissions, promote renewable energy, enhance climate resilience and protect vulnerable communities from the impacts of climate change.

Governments can access these grants by submitting biogas project proposals as they align with climate mitigation and adaptation goals. 

 

EXAMPLE

The GCF aims to invest in mitigation and adaptation projects, including those in the Least Developed countries, Small Island Developing States and African states. As of 2024, the GCF had approved $50 billion in financed and co-financed projects.⁵⁸

 

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1.7. Identify feedstocks and biogas potential

Since biogas is generated primarily from waste – such as the organic fraction of municipal solid waste, garden waste, sewage, crop residues, manure from livestock and industrial waste, and to a lesser extent, sustainably grown energy crops – the potential of its generation in any country is finite. It is important to spatially map out the sources and volume of organic waste; that is, feedstock for biogas.

Besides the commonly occurring wastes, there may be country-specific industrial or agricultural waste feedstocks suitable for AD, such as waste from the sugar industry (Brazil, India), algal biomass and aquaculture waste (Norway, Japan), palm oil mill effluent (Malaysia, Indonesia), rice bran and straw (Vietnam, India), and distillery or brewery waste (Scotland, Mexico).

An overarching government strategy that characterises and quantifies key organic wastes, residues and purpose-grown feedstocks that are available in the country and suitable for the biogas industry is an essential step for the growth of the industry. Such a strategy will highlight the potential scale of the sector and the opportunity it presents in terms of meeting national climate commitments. It will also support the development of targeted policies and regulations for the sector and feedstock to streamline and incentivise their capture and use. 

 

EXAMPLES

The UK published a biomass strategy that recognises biomass as a limited resource and emphasises the need to prioritise its use in the most environmentally, socially and economically beneficial way. It also identifies biomethane production as a priority use of biomass.⁵⁹

The European Commission publishes annual biomethane reports for every member country, and it includes its potential and key opportunity sectors.⁶⁰

The biomethane potential of EU-28 countries in 2030 by country and feedstock has been published and is shown in figure 5.⁶¹

The National Renewable Energy Laboratory estimates the biomethane potential of the US as 420 billion cubic metres (bcm).⁶² It breaks down the potential by state and feedstock (industrial, institutional and commercial organic waste, animal manure, wastewater and landfills).

 

Figure 5. Biomethane potential of European countries in 2030⁶³

Source: Gas for Climate (2022)

 

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1. 8. Set biogas generation targets and methane leakage mitigation standards

Setting biogas generation targets based on a country’s total potential is crucial for developing the industry. Clear targets provide direction for policymakers to create policy incentives and appropriate regulations, streamline planning and permitting processes, and promote technology adoption. These targets also demonstrate the scale of opportunity to industry, driving investment while also making the sector more attractive for funding and partnerships. It is important that targets integrate standards to avoid methane leaks in operations. 

Achieving these goals can contribute to international and national agendas and targets, including reducing reliance on fossil fuels, cutting GHG emissions, promoting sustainable solutions in multiple sectors such as energy, waste management and agriculture.

A specific biogas generation target is therefore essential to harnessing the full potential of industry. 

 

EXAMPLE

Europe has set a target to achieve biomethane production of 35 bcm per year by 2030.⁶⁴ This will require additional livestock manure, food and industrial waste to be captured and treated alongside the increased cultivation of energy crops that meet the EU sustainability criteria.

 

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1.9. Recognise anaerobic digestion as a preferred technology for waste recovery

Anaerobic digestion (AD) enables the recovery of energy and nutrients present in food and other organic waste. It is a highly efficient method for managing organic waste because it transforms waste into valuable resources while minimising environmental and economic impacts and thus, must be high in the waste hierarchy. By identifying it as one of the preferred technologies for waste recovery, the sector can be catalysed as a whole and complement other technologies where the opportunities present themselves, such as composting or using organic wastes as feedstocks for chemistry, and the production of, for example, sustainable aviation fuels. 

 

EXAMPLE

South Korea aims to treat 36% of food waste via anaerobic digestion by 2027.⁶⁵

 

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1.10. Identify priority use for biogas and co-products

Biogas is a versatile energy source. It can be burned directly to cook food, used in a combined heat and power (CHP) engine to generate electricity and thermal heat, upgraded to biomethane to be injected into the gas grid to provide fuel for heating, or converted into compressed or liquefied biogas to be used as transport fuel. With more recent innovations in technology, its potential use as a precursor to green hydrogen, biomethanol for shipping, sustainable aviation fuel, and rocket fuel has emerged.

While market forces will drive the more niche uses, policymakers can match the larger volume of generation with the needs of the economy. Identifying a specific need and role for biogas will streamline policymaking and give assurance to supply chain and investors. These priority areas can be supported by use of mandates or policies such as:

• A biomethane blending mandate in the gas grid. A progressively increasing blending mandate can support the decarbonisation of unavoidable gas uses. 

 

EXAMPLE

Denmark aims to make 70% of the gas in the grid biomethane by 2030.⁶⁶

 

• A biomethane blending mandate in gaseous transport fuel. In countries where compressed natural gas is used in transport, mandatory biogas blending can provide a starting point for the industry.

 

EXAMPLE

India has mandated 5% biogas in compressed and piped natural gas by 2028.⁶⁷

 

• Setting location-based targets. To promote geographical reach and use of the technology, specific location-based targets can be set. 

 

EXAMPLE

India has set a target to build a biogas plant in every district in the country.⁶⁸

 

• Exemption under ETS and other emissions trading schemes. Special conditions apply to biogas and biomethane due to their classification as renewable energy sources. 

 

EXAMPLE

CO₂ emissions from sustainable biomass, biogas, and biomethane are not counted towards an installation’s emissions, as they are considered carbon-neutral under EU ETS rules. To qualify it must meet the EU Renewable Energy Directive (RED II) sustainability criteria.⁶⁹

 

Similarly, priority use for digestate and bio-CO₂ can be identified and incentivised. These are discussed further in Pillar 3: Biogas Utilisation, Pillar 4: Digestate Policy, and Pillar 5: Gas Quality Regulations.

 

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1.11. Establish an emissions trading scheme

Emissions trading schemes cap the total amount of emissions allowed from an industry, installation or operator. These emissions allowances are measured in carbon dioxide equivalents. Companies may buy or sell allowances to meet their emissions caps. This trading incentivises the most cost-effective method of emissions reduction via mitigation technology development and implementation.

While emissions trading schemes only consider GHG emissions, they are a first step towards internalising the environmental cost of goods and services. Other effects, such as those on air, water, soil and biodiversity, tend to be managed through regulation and permitting.

Countries may participate in emissions trading schemes that already exist internationally or set up their own national ones.

Setting up national emissions markets can allow for the most efficient and cost-effective pathways to emissions reduction for the country. 

 

EXAMPLE

New Zealand has set up a national trading scheme that covers all sectors of the economy except agriculture. Agricultural emissions from all farms are measured, managed and reduced via the Primary Sector Climate Partnership.⁷¹

Chile operates the Green Tax Emissions Compensation System, a national ETS that allows organisations that exceed specified emissions levels to purchase offsets as compensation.^{72 73} 

Australia’s Safeguard Mechanism assigns emissions baselines for high emitting facilities (in line with 2030 emissions targets) and when these baselines are exceeded, facilities can offset emissions through purchasing Australian Carbon Credit Units. Waste is one of five sectors covered by the Safeguard Mechanism.⁷⁴

India is proposing to include biogas-based emissions reductions as offsets.⁷⁵

 

Similarly, countries can participate in voluntary carbon-trading markets, such as the Paris Agreement Crediting Mechanism (PACM) described in the Paris Agreement Article 6.4.70 

To support the biogas industry, which mitigates carbon dioxide, methane and nitrous oxide emissions from various sources, it is important to expand the current schemes. This will allow full participation from the industry and fair compensation for its environmental benefits.

 1.11.1. Include methane in emissions trading schemes

 Most emissions trading schemes are based on carbon dioxide, with a few including methane and nitrous oxide emissions to a small extent. Methane accounts for 18% of global anthropogenic emissions and its global-warming potential compared to carbon dioxide is 27.0–29.8  times higher over a 100-year period and 79.7–82.5 ± 25.8 times higher over a 20-year period.

Anaerobic digestion can mitigate methane emissions from livestock and manure, agricultural soils, landfills and wastewater. It is, therefore, important to include methane in emissions trading schemes, for methane emissions regulation and to support the biogas industry.

 

EXAMPLE

The EU ETS is the longest running emissions trading scheme. From 2026, it will include methane and nitrous oxide.⁷⁶

The California Cap and Trade scheme includes methane emissions from livestock farms, rice cultivation and mining projects.⁷⁷

 

 1.11.2. Incorporate methane as a short-lived climate pollutant

 Methane is known to be a short-lived climate pollutant. It has a lifetime of 12 years. The global-warming potential of non-fossil and fossil methane, as compared to carbon dioxide, varies from 27.0–29.8 ± 11 times higher over a 100-year period and 79.7–82.5 ± 25.8 times higher over a 20-year period, as shown in table 1, an extract from the Intergovernmental Panel on Climate Change AR6 Global Warming Potential.

Table 1. Global warming potential of greenhouse gases⁷⁸

Species	Lifetime (Years)	Radiative Efficiency (W m-² ppb-¹) Radiative Efficiency (W m-² ppb-¹)	GWP-20	GWP-100	GWP-500	GTP-50	GTP-100	QGTP-50 (years)	QGTP-100 (years)
CO2	Multiple	1.33 ± 0.16 × 10-⁵	1.000	1.000	1.000	1.000	1.000
CH₄ – fossil	11.8 ± 1.8	5.7 ± 1.4 × 10-⁴	82.5 ± 25.8	29.8 ± 11	10.0 ± 3.8	13.2 ± 6.1	7.5 ± 2.9	2823 ± 1060	3531 ± 1385
CH₄ – non-fossil	11.8 ± 1.8	5.7 ± 1.4 × 10-⁴	79.7 ± 25.8	27.0 ± 11	7.2 ± 3.8	10.4 ± 6.1	4.7 ± 2.9	2675 ± 1057	3228 ± 1364
N₂O	109 ± 10	2.8 ± 1.1 × 10-³	273 ± 118	273 ± 130	130 ± 64	290 ± 140	233 ± 110

 

This means that the actual impact of methane on climate change in the shorter term is much higher and more significant than carbon dioxide. Therefore, it is important that the inclusion of methane in emissions trading schemes is based on global warming potential over a 20-year time frame rather than a 100-year timeframe, which does not capture the true impact of methane emissions on the climate and the opportunity it presents to mitigate climate change. This impact and timeframe will reflect the urgency and provide the impetus needed to curb methane emissions.

Currently there are no known examples of emissions trading schemes that consider the true nature and impact of methane emissions.

 1.11.3. Include anaerobic digestion technology for emission credits

Anthropogenic methane emissions come from three main sources: agriculture (40%), fossil fuels (35%) and waste (20%). Anaerobic digestion of organic wastes can reduce emissions from all three sources, through: livestock manure and crop residue management; organic fertiliser production; food waste management; industrial organic waste management; sewage treatment; and renewable energy generation.

Therefore, AD must be included as a sector and technology that generates emissions credits. These can be linked to renewable energy certificates, lifecycle assessments and sustainability criteria to achieve the most favourable environmental outcomes. This is discussed further in Pillar 2: Feedstock Policy. 

 

EXAMPLE

California Cap and Trade includes farm-based biogas plants and provides a detailed methodology that takes lifecycle emissions into account.⁷⁹  These accounted for 4% of offsets issued (as of 13 March 2024).⁸⁰

 

 1.11.4. Include other GHGs in emissions trading

Nitrogen is an abundant element in the atmosphere, and fertilisers form an integral part of modern agriculture. Excess nitrogen applied to land, however, intensifies climate change, depletes ozone and causes eutrophication of water bodies. The excessive application of nitrogen to land as fertiliser is managed by regulation.

A consequence of the overuse of nitrogen fertiliser is the release of nitrous oxide, a GHG with a warming potential 270 times that of carbon dioxide. It accounts for 6% of the total GHG emissions in the world, and is important to manage as it has wider environmental impacts.⁸¹

 

EXAMPLES

The Alberta Technology Innovation and Emission Reduction Offset System allows for emissions reduction from anaerobic digestion of wastewater and organic waste. It accounts for methane as well as nitrous oxide emissions.⁸²

The EU Nitrates Directive aims to reduce water pollution caused by nitrates used in agriculture by monitoring nitrate concentrations, designating nitrate-vulnerable zones and establishing codes of best agricultural practices.⁸³

 

 

1.11.5. Link to other climate initiatives

All government funded incentives and schemes must demonstrate implementation of the waste hierarchy and sustainability criteria. To derive full monetary and environmental benefit from the AD industry, government schemes can also be linked to emission savings.

 

EXAMPLES

California’s Low Carbon Fuel Standard considers the carbon intensity of fuels for carbon credits.⁸⁴ 

The UK’s Renewable Transport Fuel Obligation requires renewable fuels to be used in transport and sets a minimum carbon saving to qualify.⁸⁵

 

AD also falls under the emerging Bioenergy with Carbon Capture and Storage (BECCS) solution with biogenic CO₂ removed from the atmosphere by crops captured and sequestered permanently, leading to a net reduction of CO₂ in the atmosphere. 

 

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1.12. Develop and balance grid

Energy production and consumption have changed significantly in the last couple of decades:

• Decentralisation of energy production. Power generation is moving away from big coal, gas and nuclear power plants to thousands of smaller solar and wind farms.
• Variable electricity production. As opposed to the base, continuous and well-managed power provided by the larger plants (coal, gas and nuclear), the smaller and more numerous plants generate renewable energy (solar and wind) at different times of the day and night, which cannot be controlled. These can only be managed with energy-storage technologies, such as batteries and biogas.
• Decarbonisation of the gas grid. Natural gas capture and distribution is moving from long-distance gas pipelines to a system requiring biomethane plants injecting at various points and the potential for hydrogen blending in the future.
• Peak electricity demands. With a growing population in certain geographies, economic development, shift towards the electrification of heat and transport, power demand, as well as peak power demand, has increased significantly.

This change in energy production and consumption has resulted in significant pressure on the gas and power grids. To remain fit for purpose, the ageing power grids need to be modernised to handle unprecedented high peak loads and dynamic power generation and use. At the same time, the demand for gas and power needs to be managed so that the peak demand is reduced. The following policies are recommended to meet this new demand.

 1.12.1. Grid modernisation

Set out clear policies and programmes to modernise grids so that they can support the smooth and agile feed-in, storage, transmission, distribution and use of energy. Grids need to have longevity, allow for interconnection and deal with pressure build-up in the network.

 

EXAMPLE

New York’s Reforming the Energy Vision is an overarching policy that includes grid modernisation as part of a dynamic clean energy economy.⁸⁶

 

1.12.2. Capacity markets

Include biogas/biomethane in capacity markets to capitalise on the ability to store and dispatch this form of energy as required. 

 

EXAMPLE

Germany amended its Renewable Energy Act (Erneuerbare Energien Gesetz – EEG 2023) to include biomethane for electricity generation.^{87 88}

 

1.12.3. Demand response programmes

Encourage demand response programmes to shift customers’ electricity consumption to off-peak times. This will reduce the need for power and transmission infrastructure and improve grid reliability, which will benefit customers. 

 

EXAMPLE

The demand response programme in California is administered by investor-owned utilities, jurisdictional entities or third-party commercial entities known as ‘Aggregators’ or ‘Demand Response Providers’.⁸⁹

 

1.12.4. Performance-based grid regulation

Performance-based regulation can drive significant improvements in the energy sector, promoting efficiency, innovation and a more sustainable and reliable electricity grid. 

 

EXAMPLE

The UK’s RIIO-2 (revenue, incentives, innovation, output) framework is a regulatory framework to set price controls for network companies in the electricity and gas sectors. RIIO is designed to encourage utility companies to focus more on long-term value, innovation and service quality.⁹⁰

 

1.12.5. Grid code requirements

Specify detailed technical requirements that enable feed-in and harmonisation of the electricity and gas grid. This is discussed further in Pillar 5: Gas Quality Regulations. 

 

EXAMPLE

Grid codes in Germany specify special statutory regulations for biogas plants.⁹¹

 

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1.13. Support microscale/household digesters

In rural and developing parts of the world, microscale biogas plants can be especially useful in providing decentralised and locally sourced energy and waste management solutions. At this scale of deployment biogas can make a significant contribution towards achieving SDGs and targets, including the improvement of air and water quality, health and sanitation, energy and food security, reduced deforestation and gender equality.

Specific policies and programmes that support microscale digestion must be implemented. These are discussed throughout the framework, including in Pillar 2: Feedstock Policy, Pillar 3: Biogas Utilisation, Pillar 5: Gas Quality Regulations, Pillar 6: Planning Policy, and Pillar 7: Environmental Permitting. 

 

EXAMPLE

Several countries, including India and China, have government-led programmes and policies that support microscale anaerobic digestion.^{92 93} 

 

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1.14. Develop green skills and training programmes

While AD itself is a simple biological process, developing, building and operating biogas plants requires varied skills across the supply chain, including building construction, managing and handling feedstocks, laboratory testing, managing inflammable gas, running electrical equipment, knowledge of farming outputs and operations, logistics and project management.

To ensure that the industry has adequately skilled professionals, these skills must be included in the curriculum of academic and technical institutions. Standardised training and certification programmes must be developed and integrated into competency requirements for the industry.

 

EXAMPLE

The CIWM (WAMITAB) operator competence scheme is designed to allow permitted waste facilities in England and Wales to demonstrate they employ technically competent people with the knowledge and skills to ensure waste sites comply with Environmental Permitting Regulations (2007), an operational requirement.⁹⁴

 

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1.15. Support gender equality through the biogas industry

Worldwide, 2.3 billion people still use traditional solid fuels, such as dried manure, straw, firewood and coal, for cooking in open fires or basic stoves. The smoke from such cooking practices contributes to 3.7 million premature deaths every year, with women and children most at risk.⁹⁵ Collecting firewood in the forest or the bush can take several hours every day, and women and children undertaking the task are vulnerable to accidents, animal attacks and violence. It also limits opportunities for education, economic independence and a better quality of life.

Biogas can be used as a clean cooking fuel while the digestate can be applied to land to improve its fertility. The importance of biogas in addressing these gender inequality issues cannot be underestimated. It is therefore absolutely necessary that governments support microscale digestion with a special focus on supporting women. 

 

EXAMPLE

The Indian government provides targeted financial assistance for small-scale digesters with additional support for plants constructed in remote areas and connected to sanitary toilets.⁹⁶

 

These policies are discussed in further detail under Pillar: 3 Biogas Utilisation.

 

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1.16. Looking forward

By adopting the Global Biogas Regulatory Framework, nations can implement the policies needed to meet overall climate, sustainability and sanitation goals, and within them the specific goals of the Global Methane Pledge, using AD as one of the solutions. Commitment to overarching international targets and adoption of national policies will set a level playing field and the overall direction and pace for the development of the biogas industry. Once adopted, these high-level policies need to be supported by sector specific policies, regulations and standards. Given the nature of the industry, it is critical that the framework implemented is holistic and streamlined to facilitate rapid growth for the biogas sector while protecting the planet and people. The following chapters will discuss the various aspects of the industry and best practices from across the globe.

 

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Footnotes

The Paris Agreement. https://unfccc.int/process-and-meetings/the-paris-agreement 

1. “Sector by sector: where do global greenhouse gas emissions come from?”, Our World in Data.  https://ourworldindata.org/ghg-emissions-by-sector
2. See “Global potential of biogas”, World Biogas Association. https://www.worldbiogasassociation.org/global-potential-of-biogas/
3. The Paris Agreement. https://www.un.org/en/climatechange/paris-agreement
4. The Global Methane Pledge. https://www.globalmethanepledge.org/ 
5. “Delivering the Global Methane Pledge”, World Biogas Association. https://www.worldbiogasassociation.org/wp-content/uploads/2022/11/WBA-biogas-insight1-Deliveing-the-Global-Methane-Pledge-pamphlet.pdf
6. The Global Methane Pledge. https://www.globalmethanepledge.org/
7. “Global Renewables and Energy Efficiency Pledge”, COP28. https://www.cop28.com/en/global-renewables-and-energy-efficiency-pledge 
8. “Broken Record”, UN Environment Programme. https://wedocs.unep.org/bitstream/handle/20.500.11822/43922/EGR2023.pdf
9. “The Sustainable Development Goals Report. Special Edition 2023”, United Nations. https://unstats.un.org/sdgs/report/2023/The-Sustainable-Development-Goals-Report-2023.pdf 
10. “How to Achieve the SDGs Through Biogas”, WBA. https://www.worldbiogasassociation.org/wp-content/uploads/2018/07/WBA-SDGs-Biogas-factsheet-3.pdf
11. “A Vision of Clean Cooking Access for All”, IEA. https://iea.blob.core.windows.net/assets/212dda1e-63ec-4f42-a530-f2ef3da74fdf/AVisionforCleanCookingAccessforAll.pdf
12. “The Sustainable Development Goals Report”.
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38. Landfill Gas Management Regulation, Environmental Management Act, British Columbia, Canada. https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/391_2008 
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70. He Waka Eke Noa Primary Sector Climate Action Partnership, Ministry for the Environment, New Zealand. https://environment.govt.nz/assets/publications/climate-change/he-waka-eke-noa-primary-sector-climate-action-programme-structure-July-2020.pdf 
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