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ESG, BRSR & Net-Zero

Methane, GWP-20 vs GWP-100, and Why Climate Targets Keep Tightening

The choice between GWP-20 and GWP-100 can change a methane-heavy company's reported footprint by a factor of three. Here is what the metrics mean, which to use, and why a shrinking carbon budget makes compliance stringency a one-way ratchet.

Carbon Credit Consulting

Carbon advisory team

Published 8 min read

Reviewed for accuracy by CCC Advisory Team

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Should a company report methane using GWP-20 or GWP-100?

Use GWP-100 for your headline number — it is the GHG Protocol default and what BRSR, CDP and SBTi expect, currently at IPCC AR6 values of roughly 28–30 for fossil methane. But understand what it hides: over 20 years methane's GWP is about 80–83, so a methane-heavy company's footprint can differ by nearly a factor of three depending on the horizon chosen. Neither number is wrong; they answer different questions. If methane is material to your business, report GWP-100 as standard and disclose the GWP-20 view alongside it.

Two different gases warm the planet in two very different ways, and greenhouse gas accounting collapses that difference into a single number called CO₂-equivalent. It is a necessary simplification. It is also the source of persistent confusion, and occasionally of genuinely misleading corporate claims.

What GWP actually measures

Global Warming Potential answers a specific question: if I release one kilogram of this gas, how much more heat does it trap over the next N years than one kilogram of CO₂ would?

The time horizon is not a technical detail — it is the whole argument. Carbon dioxide, once emitted, persists for centuries; a meaningful fraction is still influencing the climate a thousand years later. Methane is destroyed in the atmosphere with a lifetime of roughly 12 years, but while present it is a dramatically more effective absorber of infrared radiation.

So the comparison depends entirely on how long you watch:

HorizonMethane GWP (IPCC AR6, fossil)What it captures
20 years~82.5Near-term warming while the methane is still present
100 years~29.8Long-run average, most of it after the methane is gone
500 years~10Almost entirely dilution of a pulse that ended centuries earlier

Neither number is the honest one

It is tempting to say GWP-20 reveals what GWP-100 conceals. That is only half right. GWP-100 genuinely understates methane's near-term impact; GWP-20 genuinely overstates its contribution to long-run temperature. The metric is a summary of a curve, and summarising a curve with one number always loses something. What matters is knowing which question you are answering.

Why the choice can move a footprint by 3×

For most companies this is academic — methane is a rounding error next to CO₂ from energy use. For a subset it is decisive.

Consider a company with 100,000 tCO₂e of CO₂ emissions and 1,000 tonnes of methane:

  • At GWP-100 (~30): 100,000 + 30,000 = 130,000 tCO₂e. Methane is 23% of the footprint.
  • At GWP-20 (~83): 100,000 + 83,000 = 183,000 tCO₂e. Methane is 45% of the footprint.

Same physical emissions, same year, a 41% difference in the reported total — and a complete change in where abatement capital should go. Under GWP-100 this is an energy company with a methane side-issue. Under GWP-20 methane is nearly half the problem.

In India, the businesses where this bites are specific: landfill and waste operators, wastewater treatment, coal mining, gas distribution, dairy and livestock supply chains, and rice-based food companies. If you are in one of those, the horizon choice is a live commercial question, not a footnote.

~12 years

atmospheric lifetime of methane — short, but potent while present

Source: IPCC AR6

~83 vs ~30

methane GWP over 20 years versus 100 years (AR6, fossil methane)

Source: IPCC AR6

~2.8×

how much the horizon choice can shift a methane-heavy company's reported footprint

What to actually do

Report GWP-100 as your headline. The GHG Protocol specifies it, BRSR and CDP expect it, and SBTi validates against it. Deviating makes your figures incomparable and invites the suspicion that you chose the flattering number.

Use current AR6 values. Many inventories still run on AR4 (GWP-100 of 25) or AR5 (28) because that is what the template said years ago. AR6 is the current science. State explicitly which assessment report your factors come from — this is a common and easily fixed audit finding.

Disclose the GWP-20 view if methane is material. For a landfill operator or dairy company, a supplementary GWP-20 figure demonstrates that you understand your near-term impact. Presented as additional context it reads as rigour. Presented instead of GWP-100, it reads as manipulation.

Never mix horizons within one number. Every tonne in a single reported figure must use the same horizon and the same assessment report. Mixed-basis totals are meaningless and will not survive assurance.

The claim to avoid

Do not use GWP-20 to inflate the apparent value of a methane-reduction project when selling credits, then use GWP-100 for your own reported footprint. Choosing the horizon that flatters each side of the ledger is exactly the practice that has damaged credibility in voluntary markets, and buyers now check.

The carbon budget, and why targets only tighten

The second half of this story is about why any of it is enforced.

The remaining carbon budget is the total additional CO₂ that can be emitted while keeping warming below a threshold with a stated probability. It follows from a robust physical result: peak warming is close to proportional to cumulative CO₂ emissions. Not the rate — the total.

That makes the budget a finite, depleting quantity, and it sits underneath everything:

  • National NDCs are, implicitly, claims on shares of it.
  • India's CCTS emission-intensity targets are calibrated against a national trajectory derived from it.
  • Science-based targets are explicitly defined as a company's fair share of it.
  • CBAM exists because a carbon price without border adjustment leaks budget consumption offshore.

The ratchet

A budget can only shrink. Every year of emissions reduces what remains, and warming that has already occurred cannot be un-warmed. This means target stringency has a direction — it tightens. There is no realistic scenario in which the obligations facing an Indian obligated entity in 2035 are looser than today's.

Where natural feedbacks come in

Here is the connection back to the science. The budget is defined by total warming, not warming from human sources alone. Emissions from natural systems that increase in response to warming consume the same finite headroom — and they answer to no regulator.

This is why the 2026 Science study on Siberian methane is more than a curiosity. It documents Siberian methane emissions rising by roughly 10.4 Tg per year per decade over 2010–2023, driven by warming-induced wildfire and wetland methanogenesis rather than industry. Its projections — explicitly conditional sensitivity estimates, not forecasts — put eastern Siberian emissions at 97.5 ± 32.0 Tg per year by 2081–2100 under SSP3-7.0, and 169.2 ± 54.1 Tg per year under SSP5-8.5.

The implication for planning is straightforward and does not require accepting any particular projection: if natural sources take a larger share of the budget than models assumed, the share left for everyone else is smaller. That translates into faster tightening — of national targets, of CCTS benchmarks, of what a "science-based" corporate trajectory requires.

What this means for planning

Assume tightening, not stability. A decarbonisation plan built on today's obligation levels is planning for a world that will not exist. Build headroom.

Front-load abatement. Because warming responds to cumulative emissions, a tonne cut in 2027 is worth more than the same tonne cut in 2037 — it removes warming for the intervening decade. Delay has a physical cost, not only a regulatory one.

Treat methane as a near-term lever. Its short lifetime cuts both ways: it means GWP-100 flatters methane emissions, and it means methane cuts deliver benefit unusually fast. Reduce methane today and the atmospheric concentration responds within roughly a decade, unlike CO₂. For companies with material methane, it is often the cheapest near-term climate return available.

Set targets against the science, not the current rulebook. A target that merely meets today's compliance threshold will need revising. One built on a science-based trajectory is durable — which is what makes SBTi validation worth the effort rather than a badge.

Know your methane exposure before you are asked. If methane is material and you have never examined it closely, that is the gap most likely to produce an unpleasant surprise — from an assurance provider, a buyer, or a satellite.

Carbon Credit Consulting builds greenhouse gas inventories on current AR6 factors, and helps companies set costed, science-aligned targets that survive tightening compliance. Explore our ESG & BRSR reporting and GHG accounting services, or talk to us.

Sources

  1. IPCC Sixth Assessment Report (AR6), Working Group I
  2. GHG Protocol Corporate Accounting and Reporting Standard
  3. Zhu et al., Decadal doubling of Siberian methane emissions due to warming-induced fires and methanogenesis, Science 393, 615 (2026)

Frequently asked questions

Global Warming Potential expresses how much heat a gas traps relative to the same mass of carbon dioxide, integrated over a chosen time horizon. Methane is short-lived — roughly 12 years in the atmosphere — but very potent while present. Over 100 years its GWP is about 28 to 30; over 20 years it is about 80 to 83. Neither figure is more correct than the other: they answer different questions. GWP-100 asks about long-run cumulative warming, GWP-20 about warming over the next two decades.

GWP-100 remains the default for corporate reporting under the GHG Protocol, the standard used by BRSR, CDP and SBTi, so your headline number should use it. The current convention is IPCC AR6 GWP-100 values. Reporting a GWP-20 figure alongside is increasingly good practice for methane-heavy companies, because it shows near-term climate impact that GWP-100 flattens — but it should supplement the standard figure, never replace it.

The remaining carbon budget is the total additional CO2 that can be emitted while keeping warming below a chosen threshold with a given probability. It is finite and depleting, and it is the physical quantity behind every emissions target — national NDCs, India's CCTS intensity targets and corporate science-based targets are all ultimately shares of it. Because the budget only shrinks, target stringency only ratchets in one direction, which is the strongest planning argument for acting earlier than required.

Effectively yes. The remaining budget is defined by total warming, not by warming from human sources alone. Natural emissions that grow in response to warming — such as the Siberian increase documented in a 2026 Science study — consume part of the same finite headroom. Larger natural contributions mean a smaller share left for everyone else, which translates into faster tightening of compliance obligations and target trajectories.

About the author

Carbon Credit Consulting

Carbon advisory team

The Carbon Credit Consulting advisory team writes on India’s carbon markets — CCTS, CBAM, offset projects, GHG accounting and ESG/BRSR — turning fast-moving rules into practical guidance for businesses, exporters and FPOs.

  • CCTS & CBAM advisory
  • GHG Protocol & ISO 14064
  • Verra & Gold Standard project experience

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