Methane takes centre stage as Türkiye sets waste-cut goal for COP31

KUALA LUMPUR, 26 AUGUST 2026 —

Malaysia Braces for Global Methane Policy Shifts Ahead of COP31

KUALA LUMPUR, Aug 25 — Malaysia is closely monitoring new international methane policies that could reshape global climate diplomacy, particularly as Türkiye—Australia’s partner for COP31—elevates methane emissions as a key focus in its Action Agenda for the November climate conference.

Türkiye’s agenda includes a target to halve global waste growth by 2035, addressing the waste sector’s role as the third-largest source of human-caused methane emissions, after agriculture and fossil fuels. The move builds on over a decade of rising global momentum on methane regulation, which gained traction in 2014 when Colorado became one of the first jurisdictions to regulate methane from oil and gas operations.

Since then, jurisdictions including the EU, Canada, Colombia, and Nigeria have introduced methane regulations for the oil and gas industry. In 2021, 100 countries, including the EU, joined the Global Methane Pledge, committing to voluntary cuts of at least 30% in methane emissions between 2020 and 2030. The pledge now includes 159 countries.

Methane’s high warming potential and short atmospheric lifespan make it a critical target for near-term climate action. The UN Environment Programme estimates that cutting methane emissions is one of the most cost-effective ways to limit short-term warming, with around 40% of fossil fuel methane emissions avoidable at no net cost.

The EU is leveraging its role as a major fossil fuel importer to push for stricter methane controls. From 2030, the bloc will require fossil fuel imports to meet methane emissions intensity standards, compelling supplier nations to improve monitoring and reporting. The EU’s 2020 methane strategy also envisages cooperation with major gas importers in Asia, including Japan, South Korea, and China.

Japan and South Korea launched a voluntary program in 2023 requesting methane emissions data from gas suppliers, a step that could pave the way for mandatory rules. Meanwhile, Barbados Prime Minister Mia Mottley is advocating for a binding global methane agreement, targeting the oil and gas sector, with negotiations proposed to begin in 2027. Mottley’s initiative, backed by the Climate Vulnerable Forum, has garnered support from countries including France, Tuvalu, and the Federated States of Micronesia.

However, challenges remain. Expanding methane regulation beyond oil and gas to politically sensitive sectors will be difficult, while the participation of major emitters like China, Russia, and India—none of which have signed the Global Methane Pledge—will be. China last year extended its emissions targets to include non-CO2 greenhouse gases, including methane, for the first time.

For Malaysia, a key LNG exporter, these developments carry significant implications. The country has not yet signed the Global Methane Pledge, though it has committed to reducing carbon emissions under its national climate targets. Malaysia’s oil and gas sector, dominated by state-linked companies like Petronas, faces growing scrutiny over methane leaks, particularly in liquefied natural gas (LNG) supply chains.

Industry stakeholders in Malaysia acknowledge the need for improved methane management. Petronas has previously stated its commitment to reducing methane intensity in its operations, aligning with global best practices. The company participates in the Oil and Gas Methane Partnership 2.0 (OGMP 2.0), a UN-backed initiative for methane reporting and reduction.

Regional peers like Indonesia and Brunei, both major LNG producers, are also assessing their methane policies. Indonesia, a signatory to the Global Methane Pledge, has outlined methane reduction targets in its updated Nationally Determined Contributions (NDCs). Brunei, meanwhile, has not joined the pledge but has emphasized methane monitoring in its energy sector.

The EU’s impending methane import standards could directly impact Malaysian LNG exports, which are a key revenue source. The bloc accounts for nearly 40% of Malaysia’s LNG shipments, according to 2023 trade data. Analysts warn that failure to meet EU methane intensity requirements could lead to trade restrictions or higher compliance costs.

Domestically, Malaysia’s regulatory framework for methane remains underdeveloped. The country’s existing climate policies focus primarily on carbon dioxide emissions, with limited measures targeting methane. The Department of Environment (DOE) has not issued specific methane regulations, though it monitors emissions under broader air quality standards.

Environmental groups in Malaysia argue that stronger methane policies are overdue. The Center for Environment, Technology & Development, Malaysia (CETDEM) has called for mandatory methane reporting in the oil and gas sector, citing the need to align with global standards. “Malaysia risks falling behind if it does not adopt methane policies,” said a CETDEM spokesperson. “The EU’s rules will likely set a precedent, and exporters must prepare.”

Looking ahead, Malaysia’s approach to methane policy will depend on balancing economic interests with international climate commitments. The government has signaled openness to engaging with global methane initiatives, though no formal steps have been announced. Industry observers suggest that Malaysia may adopt voluntary measures before considering binding regulations.

For now, the focus remains on data collection and capacity building. Petronas has invested in methane detection technologies, including satellite monitoring and drone surveys, to identify leaks in its operations. The company reports methane intensity improvements in recent years, though exact figures remain undisclosed.

As global methane policies evolve, Malaysia’s role in shaping regional responses will be critical. The country’s position as a mid-sized LNG exporter gives it leverage in international negotiations, particularly within ASEAN. Regional cooperation on methane could help smaller economies like Malaysia navigate compliance challenges while maintaining competitiveness.

Yet the road ahead is complex. While methane abatement offers near-term climate benefits, experts caution against diverting attention from broader decarbonization efforts. The Intergovernmental Panel on Climate Change (IPCC) emphasizes that both methane and CO₂ reductions are essential to meeting global climate goals.

For Malaysia, the challenge will be to integrate methane policies into its broader energy transition strategy without undermining economic growth. The government’s next steps—whether through voluntary commitments, regulatory updates, or regional collaboration—will determine its readiness for the methane-driven future of global climate diplomacy.

Related: Petronas · Department of Environment (DOE) · Mia Mottley · Kuala Lumpur