Japan Launches First Insurance-Linked Methane Emission Detection Solution

A pioneering collaboration brings together insurance, risk management, engineering, and satellite analytics to fight climate change.

On August 22, 2025, in Tokyo (Japan), four companies—Sompo Japan Insurance, Sompo Risk Management, JGC Global, and Israeli startup Momentick Ltd.—announced the start of a groundbreaking service: Japan’s first insurance-linked methane emission detection solution.

This project began with a clear challenge. Methane is a greenhouse gas with a warming impact 28 to 84 times greater than carbon dioxide, depending on the timeframe considered. In 2021, the Global Methane Pledge was launched, committing nations to cut methane emissions by 30% by 2030 compared to 2020 levels. Later, at the LNG Producer–Consumer Conference 2025 (held in June 2025), governments and companies again confirmed the need to reduce greenhouse gases along the LNG value chain.

Against this backdrop, Sompo Japan and Sompo Risk began exploring satellite-based methane detection in 2024 with Momentick, conducting verification tests to assess accuracy and customer applications. Meanwhile, JGC Global, the overseas EPC arm of JGC Holdings, had already been providing its HiGHGuard® service, which quantifies greenhouse gas (GHG) emissions. Back in February 2023, JGC Holdings even built a methane measurement technology evaluation facility in Ibaraki, Japan, to support R&D and international collaboration.

The newly launched solution works in several steps. Sompo Risk analyzes satellite images around customer assets to detect methane emissions, then provides the findings as a risk report through Sompo Japan. Customers can use this report to identify potential methane leaks and plan countermeasures. For deeper assessments, clients can request on-site measurements using JGC Global’s ground sensors or drones, or tap into Momentick’s software for more advanced data.

Looking forward, the service will also integrate data from the newly launched GOSAT-GW satellite (June 29, 2025). This advanced satellite, equipped with AMSR3 and TANSO-3 sensors, will provide even higher accuracy. Sompo Risk, working with Japan’s Ministry of the Environment and the National Institute for Environmental Studies, will incorporate these insights into future risk reports.

Ultimately, the four partners believe this solution will not only help energy companies meet methane reduction goals but also transform risk management in the LNG supply chain. By linking environmental monitoring with insurance coverage, it creates financial incentives for businesses to act. Moreover, it supports UN SDG 13 (Climate Action) and strengthens Japan’s role as a hub for low-carbon technologies. If successful, the model could expand globally, helping industries worldwide balance energy security with decarbonization.

Key Terms Explained

  • Methane (CH₄): A powerful greenhouse gas, far more potent than CO₂ in the short term, making its reduction essential for slowing global warming.
  • GOSAT-GW Satellite: Japan’s latest greenhouse gas observation satellite, launched in 2025, designed to deliver high-resolution emission data from space.
  • MRV (Measurement, Reporting, Verification): The international process used to quantify, report, and validate greenhouse gas emissions.

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