Satellite sleuths: tracking methane emissions from above

While the spotlight shines on CO2, one silent killer is accelerating global warming: methane. Packing 86 times the warming power of carbon and a significant contributor to ozone emissions, methane is at the heart of a new study by BNP Paribas and Kayrros, a pioneer in using AI to interpret satellite imagery. The end goal: to collect more precise data on methane emissions, a crucial first step towards abating them.

• Methane emissions are currently 2.5 times higher than before the industrial era, warns the International Energy Agency (IEA), and more is being released in the atmosphere than ever before, with a 13% increase predicted over the course of the decade. While 40% of these emissions are of natural origin (wetlands, termites, and oceans being the top natural sources), human activity makes up for the remainder – and majority, through agriculture, fossil fuel production, and waste and sewage. The IPCC has shown that all possible trajectories towards limiting global warming to 1.5°C or 2°C involve cutting these man-made emissions by 34% from 2019 levels by 2030. 150 countries have already pledged to do so, and numerous oil and gas companies are making similar commitments, notes Reuters.

• In fact, oil and gas is a large part of the problem. Its high methane footprint comes from faulty seals and valves, causing unforeseen leaks, as well as intentional emissions, with companies releasing methane into the air for safety reasons — “globally, normal O&G operations emit the equivalent of a Nord Stream size event every single day on average”, notes the IEA Global Methane Tracker 2023. Yet the solutions are well within reach: the sector could easily cut a whopping 65% of its emissions just by better preventing leaks in gas distribution and recovering gas during production, writes the Climate & Clean Air Coalition. In the words of IEA Executive Director Fatih Birol, efforts to reduce energy’s methane emissions may thus be “one of the best – and most affordable – opportunities to limit global warming in the near term”.

• Yet there can be no mitigation without knowing precisely how much methane is being released, how, and where. The catch? Although it is believed 570 tons are released every year, we aren’t even sure how much methane is currently in the air. Data on emissions is drawn from two types of sources: bottom-up methods, based on inventory, direct measurement, or modelling, and top-down methods, such as drones, aircrafts, or satellites. Both come with unique problems: bottom-up techniques often underestimate emissions, particularly from accidental events, while satellites struggle with cloud cover, snow, or high latitudes.

• To help advance measurement, BNP Paribas has partnered up with global environmental intelligence firm Kayrros, which uses AI to process satellite imagery produced by the ESA’s constellation to track emissions with high accuracy and in near real time. Our goal: to understand how well satellites can measure methane emissions. And down the line, to help banks transition their portfolios towards carbon neutrality. To that end, we analysed 42 oil and gas players all over the world, comparing the emission intensities provided by the existing data sources on methane emissions to understand the role satellite data could play in better assessing these emissions.

• One last key finding: using tools that can detect super-emitters, we could develop and implement an approach to attribute them to the upstream and transport activities of oil and gas companies. Great news, especially as preventing accidental events from these super-emitters is one of the most cost-efficient ways to limit methane emissions. As always, knowledge is power. That is especially true when it comes to the mother of all fights: the transition towards a sustainable, carbon-neutral future.

Sustainable bonds are the promising financial tools we’ve been waiting for. Good news: the market is gearing up for growth, our experts say!

• In Europe, green bonds are gaining momentum, so much so that they now make up a majority of the sustainable bonds being issued. As for sustainability-linked bonds, European investors “still want to see improvements in the quality and ambition of the KPIs and better structuring”, says Franck Rizzoli, Managing Director – Head of ESG Financing Advisory at BNP Paribas.

• Across the Atlantic, sovereign bonds are pushing the boundaries of innovation, says Anne van Riel, Managing Director Sustainable Finance Capital Markets Americas at BNP Paribas. “People are coming up with innovative structures to finance things that otherwise wouldn't be”, notes the expert. In the U.S., the Inflation Reduction Act is boosting green bonds, with investments flowing towards renewable energy and hydrogen.

• In the APAC region, “the transition bond has become a valuable means for governments and banks […] to engage investment and implement decarbonisation at scale”, says Chaoni Huang, Managing Director – Head of Sustainable Capital Markets, Global Markets APAC at BNP Paribas. Case in point: Japan has just issued the first tranche of its Climate Transition Bond, whose proceeds will fund its green transition framework.

• Overall, “the ground is set for green bonds to proliferate”, predicts Trevor Allen, Head of Sustainability Research at BNP Paribas Markets 360, as “2030 climate targets still need more funding to ensure they are achieved”. A bright future ahead!

Circular economy is all the rage these days. But how well do we really know it?

For example, did you know that the circular economy is not just about recycling, or that buying used is not always the best option? Déga GURHAN, Emmanuelle Bru (ESG Expert in charge of circular economy, BNP Paribas Group CSR) and Damien Simon (Circular Economy Deputy Stream Leader at BNP Paribas Personal Finance) dig into the most common clichés on circularity.

A year ago, BNP Paribas set on the path towards an accelerated exit from fossil fuels. Now, our teams’ commitment and ambition are being recognised.    

• BNP Paribas has made the CDP’s Climate Change-A List, placing us among the top 1.5% of global companies for our efforts. A significant leap from last year’s position and encouragement to go even further in the future!

Want to know how impact startups can be supported?

• Follow our workshop in english which will take place at ChangeNOW in Paris, on March 27th at 12:00 (Paris Time) ! Our experts Nathalie Doré and Andreas Lambropoulos will discuss about this crucial issue with some entrepreneurs that act for a sustainable transition: Lubomila Jordanova from Plan A, Théo Scubla from each One, Sylvain Le Falher from Hello Watt and Lucie (Avril) Thiboust from Beem.

• Click on the picture below to register to the event not to miss the workshop and see you at ChangeNOW next week to discover the most innovative solutions for the ecological transition!