IEEFA: India could cut 87% of abatable coking coal methane emissions at under $20 per tCO2e

A new briefing note from the Institute for Energy Economics and Financial Analysis (IEEFA) concludes that India can mitigate around 87% of its abatable coking coal mine methane emissions for less than USD 20 per tonne of carbon dioxide equivalent (tCO₂e). This finding aligns with global estimates from the International Energy Agency (IEA), according to the report published on 30 July 2026 (ieefa.org).

The study, titled “Methane abatement in India’s coking coal push: Opportunities and costs” and authored by Purva Jain and Saumya Nautiyal, tracks 30 operating coking coal mines. It finds that seven of these mines account for 81% of the methane emissions from the group, totaling 138.3 kilotonnes (kt) per year, with nearly all located in Jharkhand. Of these emissions, potentially 105 kt per year could be reduced using existing abatement technologies (ieefa.org).

According to the IEA’s Global Methane Tracker 2026, cited in the IEEFA analysis, India’s coking coal mining produced around 234.7 kt of methane in 2025. The methane intensity stood at 5.1 kg CH₄ per tonne of coal equivalent, 50% higher than the 3.4 kg figure for steam coal (energy.economictimes.indiatimes.com). Coking coal deposits are typically deeper and more gas-rich, and underground mining requires ventilation and degasification that release higher operational emissions compared with surface mining.

India’s domestic coking coal production is set to expand under Mission Coking Coal, launched in 2021 to reduce import dependence for the steel sector. Targets include raising output toward 140 million tonnes by FY 2029–30 and potentially higher thereafter, with incentives for underground mining of deeper reserves. The IEEFA report warns that without integrating methane abatement into mine planning, this expansion—particularly underground—could significantly increase emissions and lock in long-term climate risks (ieefa.org).

The analysis emphasizes that cost should not be a barrier. Technologies for coal mine methane (CMM) capture, utilization, flaring, or oxidation are available and cost-effective at the identified threshold for most abatable emissions. Targeting the small number of high-emitting mines in Jharkhand could enable rapid reductions. The report recommends embedding methane management into Mission Coking Coal through policy mandates, operational guidelines, and pilot projects.

Beyond abatement at mines, IEEFA advises prioritizing lower coking coal demand in steel production. Pathways include greater use of electric arc furnaces (EAF), scrap utilization, and green hydrogen-based direct reduced iron. Scrap-based EAF requires far less coking coal than blast furnaces. The report also notes potential to utilize recovered CMM and coal bed methane (CBM) within the steel value chain itself. India already has active CBM blocks linked to the gas grid, and a Tata Steel pilot has demonstrated continuous CBM injection into a blast furnace (ieefa.org).

Methane is a potent short-lived greenhouse gas. The IEEFA note cites IPCC figures of a global warming potential of 84–87 over 20 years and notes energy-sector methane as a relatively tractable abatement opportunity compared with other sources. For India, with rising steel capacity targets and coking coal self-reliance goals, early integration of mitigation measures is presented as essential to avoid elevated emissions from the sector.

The findings draw on IEA data alongside IEEFA’s mine-level tracking and cost assessments. Coverage of the report has appeared in specialist energy outlets such as ET EnergyWorld.