Description
Providing access to energy, while addressing global climate change, is one of the greatest challenges of the 21st century. Natural gas plays a major role in meeting global energy demand today. Since natural gas consists mainly of methane, a potent greenhouse gas, its part in the transition to a low-carbon future will be influenced by the extent to which the oil and gas industry reduces its methane emissions. In November 2017, eight oil and gas companies signed up to Guiding Principles for reducing methane emissions along the natural gas value chain, from production to the final consumer. The principles were developed collaboratively by a coalition of industry, international institutions, non-governmental organisations and academics. The Principles are complementary to and mutually reinforcing of other initiatives, including the Oil and Gas Climate Initiative and the Climate and Clean Air Coalition’s Oil and Gas Methane Partnership. Methane reducing measures are already adopted by many companies on a voluntary basis. Policy and regulatory frameworks can ensure assertive and proportional effort across the full value chain. The Methane Guiding Principles advocate for sound methane policies and regulations that incentivise early action, drive performance improvements, facilitate proper enforcement, and support flexibility and innovation. This document sets out the key elements that would form an effective policy framework focused on ensuring ambitious methane reduction outcomes are met. It is intended to provide a common basis upon which industry can engage constructively with international institutions, governments, and NGOs in the development and implementation of effective methane abatement policies. The framework is intended to provide a foundation upon which jurisdiction-specific regulatory recommendations could be based.