Release of green house gases (GHGs) from landfills as a result of ineffective management of those landfills is a serious environmental problem especially in developing countries. The landfill gas (LFG) thus released is a potential resource that can be converted to renewable energy. LFG is made up majorly of methane and carbon dioxide and produced by anaerobic biodegradation processes of municipal solid waste in landfills. This study estimates the amount of this methane emitted from landfills and its potential economic benefits. Using the Intergovernmental Panel on Climate Change (IPCC) methodology, in 2002, methane emission of 251,000 tonnes per year was estimated for Peninsular Malaysia based on 16,988 tonnes per day of municipal solid waste generated. This can generate 1.5 billion kWh of electricity per year worth over RM 450 million (US$141 million). In addition, this leads to carbon dioxide reduction of 5,271,000 tonnes per year equivalent to carbon credit of RM 222 million (US$69 million). Therefore, the exploration of this resource, besides the economic benefits helps in reducing the dependence on depleting fossil fuel and hence mitigating global warming.