Methods and systems are provided for operating an engine exhaust aftertreatment system to increase the efficiency of an exhaust underbody catalyst and reduce engine emissions. In one example, a bypass passage may be coupled to a main exhaust passage and during conditions which may adversely affect functionality of the underbody catalyst, exhaust may be opportunistically routed via the bypass passage avoiding the underbody catalyst. Exhaust heat may be recovered via a heat exchanger coupled to the bypass passage, and the heat may be used for engine heating, and passenger cabin heating.