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Note to reader
Given the growing interest in biomethane as a multi-purpose lever for buyers and their suppliers, particularly in heat decarbonisation, this blog, based on a webinar 3Degrees hosted during London Climate Action Week 2026, distills the key insights and highlights from that session.
Executive summary
As the 2030 near-term target horizon approaches, companies across sectors face growing pressure to address their reliance on fossil gas and associated emissions. Decarbonisation of electricity-related scope 2 emissions has matured considerably over the years, but direct fuel combustion on-site (scope 1) and within supplier networks (scope 3) remains the unavoidable challenge that most organisations have yet to solve.
Biomethane offers the pragmatic, high-impact bridge between existing assets/processes and future electrification, something organisations need today. As an immediate, scalable, drop-in solution, it enables buyers and their key suppliers to tackle thermal emissions without costly equipment or infrastructure change.
This article unpacks:
- Why market dynamics are shifting and why the time to secure high-integrity biomethane is right now;
- How biomethane fits alongside efficiency and electrification to build a resilient, multi-layered decarbonisation strategy, and;
- What a credible, practical implementation path looks like for both buyers and suppliers to turn 2030 targets into measurable progress.
The 2030 target wall & the thermal decarbonisation pressure
Over 90% of corporate near-term science-based targets align around a 2030 horizon. For years, bundled scope 1 and scope 2 targets allowed organisations to lean on renewable electricity procurement to offset lagging progress in scope 1 emission abatement.
That loophole is closing. The updated SBTi Corporate Net-Zero Standard V2.0 enforces stricter rules, separating scope 1 and scope 2 targets and placing companies on a five-year reporting cycle. From 2030 onward, scope 1 target-setting will stand alone, fully exposed and no longer hidden under renewable electricity purchases.
The stakes are highest in gas-intensive sectors. For industrial operations, pharmaceutical sterilisation, food and beverage processing, and chemical production, natural gas usage generally represents 25% to 30% of baseline emissions. Because natural gas generates emissions both upstream in the supply chain and through combustion at the point of use, addressing thermal heat is a shared strategic priority across the entire value chain.
Evaluating the three levers of thermal decarbonisation
Decarbonising natural gas and thermal process emissions requires a balanced portfolio approach. No single initiative is a silver bullet; progress relies on a combination of three complementary levers:
| Lever | Operational role | Financial profile | Key benefits | Constraints |
|---|---|---|---|---|
| Energy efficiency | Essential first step to eliminate waste and optimise process heat demand. | Upfront CAPEX with predictable long-term OPEX savings. | Reduces emissions by decreasing consumption. | The reduction ceiling gets hit relatively quickly, and it doesn’t eliminate residual fossil gas demand. |
| Electrification | Replaces Gas-fired equipment with high-efficiency heat pumps or electric processes. | High upfront Asset CAPEX; technical & regulatory barriers; ongoing OPEX for renewable power. | Deep long-term reduction when coupled with renewable electricity. | High temperature limitations, grid capacity constraints, and long asset lifecycles. |
| Biomethane (Renewable gas) | A drop-in solution that can replace fossil natural gas across existing gas infrastructure. | Ongoing OPEX premiums; near-zero upfront CAPEX (excl. on-site solutions). | Reaches high-temperature heat; uses existing grid; immediate near-term scalability. | Supply availability requires strategic long-term sourcing. |
Example of how the three levers can be applied to a glass manufacturing company
For a glass manufacturing company, efficiency measures such as cullet use and heat recovery cut baseline scope 1 natural gas emissions by roughly 15%. Electrification, where a hybrid furnace is feasible, layers on an additional 60% reduction to the same baseline. However, even combined, efficiency and electrification leave a meaningful gap on the path to net zero: the residual high-temperature heat that neither lever can fully address.
Biomethane reduces that gap. It delivers high-temperature heat that electrification cannot currently reach. Additionally, it relies on the existing gas grid with no multi-year capex build, and, with the associated guarantees of origin (GOs) and Proof of Sustainability (PoS), can be a scalable neutralising instrument by also offsetting the European Union Emissions Trading System (EU ETS) exposure on the CO2 tonnes that remain after electrification. In effect, performing the same compliance function as an actual reduction in natural gas consumption.
Biomethane sourcing & accounting
Biomethane provides a credible path for emissions reporting across both direct operations and extended supply chains when properly documented. Four considerations underpin credible implementation and accountability:
Understanding cost per tonne of CO2 across available levers, and where biomethane sits relative to EU ETS pricing.
Matching biomethane quality and volume to the specific use case, whether direct on-site combustion, supplier procurement, or compliance-scheme eligibility.
Mapping biomethane actions against SBTi’s updated hierarchy of credible actions, which now recognises activity-level, activity-pool, and interim sector-level interventions.
Navigating the fact that feedstock eligibility, certification requirements, and registry mechanics differ meaningfully by
Watch the complete webinar for a full walkthrough of each pillar, including detailed country comparisons and abatement-cost modelling.
Practical 5-step action roadmap for suppliers and buyers
To move from intent to execution, 3Degrees recommends a structured 5-step framework to deploy biomethane across direct operations and supplier engagement programmes:
| Step | Focus | Key actions |
|---|---|---|
| Quantify | Establish the baseline. | Consumption values, emissions by input used, potential OPEX and CAPEX by EUR/tCO2 abated. |
| Prioritise | Rank the options. | Decarbonisation measures by abatement price, application fit, and decarbonisation scope. |
| Align | Build internal buy-in. | Educate stakeholders across sustainability, finance, procurement, and plant management; present the roadmap for sign-off. |
| Source | Structure the transaction. | Define best-fit pricing, identify suitable qualities and availability, and set a transaction timeline. |
| Account | Report with integrity. | Categorise initiatives by inventory type, quantify reductions against requirements, and stay ready to adapt reporting as guidance evolves. |
Each step builds on the last: quantification informs prioritisation, prioritisation leads to internal alignment, alignment enables sourcing, and structured sourcing sets up transparent accounting. Skipping a step, particularly stakeholder alignment, is one of the most common reasons biomethane initiatives stall before executing contract.
The case for acting now
As 2030 corporate decarbonisation targets approach, relying on efficiency and electrification alone is insufficient for many, particularly in hard-to-abate sectors. Biomethane offers a scalable, immediate bridge to reduce both your scope 1 and your suppliers’ direct emissions (your scope 3).
3Degrees is prepared to partner with your organisation and suppliers to navigate this transition, helping you effectively build, source, and account for biomethane. Reach out to our team to begin or reassess your journey toward credible, impactful thermal decarbonisation.
Looking for help building your biomethane strategy?
Reach out to our team today.
