Methane Emissions in ASEAN’s Energy Sector

ASEAN countries are facing economic growth, and its energy security should be ensured, but a silent climate danger lurks beneath our feet. A recent report published by ACE examines that coal mine methane (CMM) emissions play a considerable yet mostly overlooked threat to the region’s climate goals and global warming mitigation efforts.

Methane, a potent greenhouse gas, has a warming effect 28 times greater than carbon dioxide over a 100-year period. Currently, 47.22% of the region’s total methane emissions come from the agriculture sector, followed by the energy sector at 24.33%. It is estimated that ASEAN’s energy demand in 2050 will triple from the 2020 level, with energy-related methane emissions predicted to reach roughly 1,100 MtCO2-e by 2050. When focusing on the ASEAN energy sector, 47% of methane emissions come from the offshore oil and gas sector and gas pipelines and Liquefied Natural Gas (LNG) facilities, followed by steam and coking coal at 44%. This is a significant percentage, given the size and diversity of industries in the region.

Within oil and gas industries, the action to abate the methane is considered cost-effective, with methane emissions being avoided by around 40% at no cost. Furthermore, there are also some global commitments and initiatives on methane abatement in the oil and gas sector such as the Methane Leadership Program (MLP) and the Oil & Gas Methane Partnership (OGMP) 2.0. Conversely, such initiatives on CMM emissions abatement in the ASEAN countries are lagging behind, if not overlooked- despite its large reduction potential and proven cost-effective technologies to mitigate emissions from existing coal mines.

The Complexity of ASEAN’s Energy Transition

One may argue that as ASEAN transitions away from coal, methane emissions will naturally decline. However, this view is dangerously shortsighted because while The ASEAN Plan of Action for Energy Cooperation (APAEC) , the regional energy blueprint document, outlines strategies to accelerate energy transition, it also emphasises the need to strengthen energy security, thereby in contention with an abrupt coal  phase out.

This is evinced by coal consumption still projected to grow 42% by 2050, as a result from the region’s growing energy demands. This near-term growth is driven by the energy needs of rapidly developing economies, particularly in countries like Indonesia, Myanmar, the Philippines, and Vietnam. These nations are balancing their transition goals with immediate energy security concerns. Indonesia, notably, plays a dominant role in this scenario, having 86% of the region’s cumulative coal production from 2010 to 2021. This underscores the importance of addressing coal-related methane emissions both from active mining operations and from abandoned mines, which continues to leak methane long after production has ceased, posing an ongoing environmental challenge.

Coal Mine Methane Challenges

During the mining process, the type of coal rank determines the methane emissions significantly. Bituminous and anthracite coal that are categorised as high-rank coals are generally more mature and contain less moisture, these coals also usually could be found in the deeper seams, so it leads to higher methane emissions when extracted. On the other hand, sub-bituminous and lignite coal that are categorised as low-rank coals have higher moisture content, so it has lower methane emissions.

Indonesia as the biggest coal producer in ASEAN faces a significant challenge in addressing the scale of coal mine methane emissions. CMM emissions of Indonesia could be up to seven times higher than officially reported. This huge discrepancy is due to outdated measurement methods and the exclusion of emissions from the underground mines, which indicates that the gap in this data is leading to serious problems.

Technological Solutions for Methane Capture in Coal Mines

Fortunately, proven technologies exist to capture and utilise coal mine methane, particularly suited to the surface mining operations common in Southeast Asia. Surface In-seam (SIS) directional drilling has emerged as a promising method for controlling methane emissions in open-pit mines, which are prevalent in countries like Indonesia, Vietnam, and the Philippines. There is also another solution for higher-concentration methane sources. From methane concentrations as low as 25–30%, it could be used for gas engines to generate power. Liquefied Natural Gas (LNG) production offers another pathway, creating a valuable fuel while reducing emissions. Despite it is not an ideal method, enclosed flaring systems could be practised, this is better for reducing methane’s climate impact.

The benefits of tackling this issue extend beyond climate mitigation. Captured methane becomes a valuable energy resource, enhancing energy security and potentially offsetting coal consumption. Furthermore, methane capture also improves mine safety by reducing explosion risks – a win-win for workers and the environment.

Barriers and Solutions to Methane Abatement

What are the primary obstacles hindering our progress? Three key barriers and their corresponding solutions are:

1. Lack of accurate data: Without robust monitoring and reporting systems, the true scale of the problem remains hidden. To address this, countries must mandate improved methane monitoring and reporting for all coal mining operations, moving beyond simplistic estimation methods, for instance from IPCC Tier 1 to IPCC Tier 2 or 3 method.
2. Misaligned incentives: The costs of implementing methane capture technologies often fall solely on mining companies, while the broader societal benefits go unrewarded. To overcome this, ASEAN countries should implement a mix of incentives and disincentives that involve multiple stakeholders. This could include government subsidies and tax incentives for mining companies investing in methane capture technologies, as well as carbon credits tradable on regional or international markets.Additionally, methane fees could be applied to high-emitting operations, with revenues reinvested in community development or clean energy projects. Consumer incentives for products made with lower-emission coal could encourage market demand for cleaner practices. This multi-faceted approach would distribute both the costs and benefits across society, including governments, businesses, and consumers, driving the adoption of abatement technologies.
3. Knowledge gaps: Many decision-makers lack awareness of available technologies and their potential returns on investment. To bridge this gap, countries should invest in research, development, and knowledge sharing to advance cost-effective methane capture solutions tailored to the region’s unique geological conditions. This will also facilitate education and capacity building, which are crucial for addressing the issue.

Regional commitment and collaboration must be sought. Specific Action Plans on methane emissions abatement must be included in the next APAEC Cycle 2026 – 2030. Leveraging the role of regional energy think tanks, such as the ASEAN Centre for Energy (ACE) can play a pivotal role in this solution by serving as a regional hub for knowledge dissemination and coordinating research efforts for the member states in implementing methane abatement strategies. The Centre has for example collaborated with the ASEAN Council on Petroleum (ASCOPE) and the USAID Southeast Asia Smart Power Programme (SPP) in developing the ASEAN Energy Sector Methane Leadership Program (MLP), an 18-month initiative programme designed to exhibit ASEAN leadership on methane emissions management in the oil and gas sector.

Conclusion

The climate crisis demands we leave no stone unturned in our quest for emissions reductions. Coal mine methane represents a significant, yet largely overlooked, opportunity to make rapid progress. By allowing this issue to remain on the back burner, ASEAN risks missing a crucial lever in its climate strategy. Therefore, ASEAN governments, companies, and academies must collectively work together to achieve a secure energy system, without the expense of lagging its climate strategy.