By implementing effective methane mitigation strategies, the analysis suggested that India could reduce coal mine methane emissions by up to 35% annually by 2030.

India can save $980 million in next five years by capturing methane emissions from planned coal expansion: Report

As India plans to increase coal mining by 2030, a new report highlights the need for and the benefits of a robust national policy to address coal mine methane emissions 

To meet rising energy demand and reduce coal imports, India’s Ministry of Coal is planning a significant expansion in domestic coal mining, reaching an annual production rate of more than 1.5 billion tonnes per year.

In such a case, a new report by Ember has found that coal mine methane mitigation technologies across underground and surface coal mines could save more than 1,600 kt of methane between 2025 and 2030. If this gas is captured and utilised as electricity, offsetting the use of imported gas, it could save up to $980 million over the next five years, the report added.

Currently, India is the second-biggest producer, importer, and user of coal worldwide. It is also among the coal mining industry’s major methane polluters.

The planned coal expansion, if implemented, could see domestic coal mining reach annual production levels that are more than 2.2 times higher than the rate when the Paris Agreement was agreed, the report said.

The report projected that annual coal mine emissions could exceed 1.6 million tonnes of methane per year by 2029, more than double compared to 2019 levels. If unaddressed, this poses a considerable risk for the country’s domestic emissions reduction plans and will have a profound short-term warming impact

Opportunity to make a progressive effort 

Due to methane’s short term warming impact, the analysis suggested that this rate of methane emissions could have a greater annual climate heating effect than the annual CO2 emissions of India’s trucks and buses in 2021.

The analysis has identified this as a critical moment to address the increase in emissions, and potentially utilise this wasted methane gas.

By implementing effective methane mitigation strategies, the analysis suggested that India could reduce coal mine methane emissions by up to 35% annually by 2030. If gradually implemented as early as next year, it could result in a cumulative reduction of more than 1.6 million tonnes of methane, equivalent to over 44.5 million tonnes of CO2e.

For instance, with the support of the United Nations Development Programme (UNDP) and The Global Environment Facility (GEF), Coal India Limited had successfully demonstrated the potential for utilising coal mine methane.

This presents a vital chance for India to not only address climate impacts but also tap into economic savings over the next five years. If regulatory reforms incentivise capturing and utilising this methane, it could replace approximately 1.5 billion cubic metres of imported gas, potentially saving up to $980 million USD over the next five years. 

“Addressing India’s coal mine methane emissions is the low-hanging opportunity we have to slow climate change, reduce surface ozone and complement India’s efforts to reduce carbon dioxide,” said Rajasekhar Modadugu, Ember’s analyst, climate and energy, India. “Policies to incentivise mitigation, capture and utilisation of coal mine methane are crucial and should be prioritised with urgency.”

Considering the potential growth of coal mine methane in the years ahead, the report said that emphasis should be placed on urgently developing an integrated approach to assess, address and potentially utilise coal mine methane. This, the report concluded, could significantly reduce the industry’s methane footprint, while capturing untapped economic benefits from methane mitigation and potential utilisation.

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