CO2 methanation has gained traction for its potential in renewable energy storage, though the high cost of renewable hydrogen production and costly metals used in methanation catalyst synthesis remain a significant barrier to implementation. Herein we present a Ru−Fe@NCNT catalyst, consisting of ruthenium and iron nanoparticles on nitrogen‐doped carbon nanotubes, as a highly selective, hydrogen efficient, iron‐driven alternative to typical nickel and ruthenium catalysts used for CO and CO2 methanation. Ru−Fe@NCNT offer competitive CO2 conversion and methane selectivity, and a reduction of up to 80 % in ruthenium loading versus similar literature and commercial catalysts. It is proposed that this desirable CO2 methanation performance, using an atypical optimal feed gas composition where PH2/PCO2=3, is the result of effective cooperation between the iron‐catalysed reverse water gas shift and methane‐selective Fischer‐Tropsch, and ruthenium‐catalysed CO methanation reactions.