From more intense hurricanes and wildfires to unpredictable droughts and floods, the everyday impact of climate change has become increasingly evident to people all around the country. What was once seen as an inconvenient anomaly is now part of our daily lives, and these events are no longer just weather nuisances—they represent a growing, costly crisis: climate-related damages are now measured in the trillions of dollars, driven in large part by one culprit often overlooked—methane.
Often overlooked, methane is a potent greenhouse gas that traps heat significantly more than carbon dioxide, and is responsible for more than a third of all global warming we’ve seen in recent decades.
Because of this power, methane has a more immediate and intense impact on climate, giving it the clear power to drive extreme weather, destroy natural resources, cause health problems to all living things, and drive mitigation efforts.
Methane Drives Extreme (and Costly) Weather Events
These severe weather events – like floods, hurricanes, droughts, and wildfires – damage infrastructure, disrupt industries, and strain economies. And they’re happening more frequently, with catastrophic financial costs: the U.S. National Oceanic and Atmospheric Administration (NOAA) estimated that in 2021 alone, climate-related disasters cost the U.S. economy $145 billion. This is a number that has increased sharply in the time since, and it is estimated that the global financial toll from climate-related disasters will reach $2 trillion annually by 2030.
“We spend a lot of time talking about agriculture, real estate, and energy industries, which are all hit hard by these disruptions, but the impact is truly global,” shares Todd Kozel of SmartCap Solutions, a firm dedicated to reducing methane emissions and promoting cleaner air, water, and soil, “Crops are failing due to irregular weather patterns, supply chains have been slowed, and there’s a very serious ripple effect that touches every person on the planet.”
The Public Health and Social Cost of Methane
Methane emissions don’t just harm the environment—they also have a direct impact on public health, leading to increased healthcare costs. Methane contributes to the formation of ground-level ozone (commonly known as smog), which is harmful to human health. According to the World Health Organization (WHO), exposure to smog causes respiratory problems like asthma, bronchitis, and chronic obstructive pulmonary disease (COPD). This is particularly dangerous for vulnerable populations such as children, the elderly, and people with pre-existing health conditions.
The U.S. Environmental Protection Agency (EPA) estimates that reducing methane emissions by 45% would prevent over 200,000 asthma attacks and 5,000 premature deaths annually in the U.S. alone.
The healthcare costs associated with treating respiratory illnesses linked to methane pollution are enormous: in the U.S., air pollution-related health costs total nearly $820 billion per year, a significant portion of which is attributable to methane-induced ozone.
Moreover, methane pollution disproportionately impacts low-income communities and people living near oil and gas operations. These communities face higher rates of asthma and other health conditions due to their proximity to methane-emitting sources. The social cost of methane, including lost workdays, reduced quality of life, and increased healthcare burdens, compounds the economic toll, making it clear that methane emissions have far-reaching financial consequences.
Lost Economic Value from Wasted Methane
Methane, the primary component of natural gas, can also be a valuable energy resource. However, a significant amount of methane is wasted due to leaks in oil and gas infrastructure. This means methane leaks not only cause damage when they enter the atmosphere but they also represent a missed economic opportunity.
Methane capture technology can convert this wasted gas into usable energy, lowering energy costs and creating new revenue streams for companies. The International Energy Agency (IEA) estimates that capturing methane emissions could reduce global emissions by 75% using existing technology, while simultaneously increasing the supply of natural gas available for energy production. The delayed action in addressing methane leaks represents a multi-billion-dollar missed opportunity.
The Global Push for Methane Solutions
The urgent need to address methane emissions has attracted the attention of some of the largest companies in the world, many of which are now investing significant resources into tackling this issue. Multinational corporations, especially those in the energy, agriculture, and waste management sectors, are not only working to reduce their own emissions but are also developing technologies that can make a real difference.
At the same time, governments around the world, led by the United States, are committing unprecedented amounts of funding to combat methane emissions. The Inflation Reduction Act of 2022 includes $369 billion in funding for clean energy investments, emissions reduction technologies, and climate resilience. This funding represents the largest investment in climate action in U.S. history, targeting methane mitigation as a critical component of the broader strategy to fight climate change.
Bolder still, methane reduction is a key part of the Global Methane Pledge which has been signed by over 100 countries. The Global Methane Pledge aims to cut methane emissions by 30% by 2030.
Methane is a Trillion-Dollar Problem – And a Trillion-Dollar Opportunity for Action
If we act quickly, the solutions are within reach. Capturing methane emissions could not only reduce the frequency of climate-related disasters but also create new economic opportunities and protect public health.
By implementing methane capture technologies, upgrading infrastructure, and committing to aggressive emission reduction targets like that set forth by the Global Methane Pledge, we have an opportunity to significantly reduce methane’s impact on both the climate and the global economy. But we cannot wait: the time to tackle this trillion-dollar methane crisis is now.
