Methane Abatement - Energy System - IEA

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Energy system Fossil Fuels Methane Abatement

Methane Abatement

What is methane What is the role in clean What are the challenges?
abatement? energy transitions? While methane emissions are
Oil, gas and coal mining Methane has a much shorter diffuse and highly variable,
operations release large atmospheric lifetime than CO2 making the magnitude of
amounts of methane, a potent but is a much more potent emissions uncertain, abatement
greenhouse gas, either by greenhouse gas. The energy technologies are reasonably
accident or design. Equipment sector is a major source of well known. The challenge is to
and operational techniques can methane emissions from human incentivise the deployment of
be applied across production activity, second only to these abatement technologies
chains to reduce these agriculture. Much of this via voluntary or regulatory
emissions, and because methane escapes with little means.
methane (natural gas) is a effort to trap it, even when gas
valuable commodity, this can markets are exceptionally tight.
often be done at no cost or
even at a profit.

Latest findings

Methane emissions from the Global methane emissions from the Open

global energy sector rose to energy sector, 2000-2022

nearly 135 Mt in 2022 Mt methane

60
The global energy sector was responsible for nearly 135
million tonnes of methane emissions in 2022, a slight 50
rise from the amount in 2021. Coal, oil and natural gas
operations are each responsible for around 40 Mt of 40
emissions and nearly 5 Mt of leaks from end-use
equipment. Around 10 Mt of emissions comes from the
30
incomplete combustion of bioenergy, largely from the
traditional use of biomass. The energy sector is
20
responsible for nearly 40% of total methane emissions
attributable to human activity, second only to
10
agriculture.

0
There is a huge opportunity to cut methane emissions 2000 2005 2010 2015 2019 2020 2021 2022

from the energy sector. We estimate that around 70% of


methane emissions from fossil fuel operations could be
reduced with existing technology. In the oil and gas IEA. Licence: CC BY 4.0
sector, emissions can be reduced by over 75% by
implementing well-known measures such as leak Oil Natural gas Coal Bioenergy
detection and repair programmes and upgrading leaky
equipment. In the coal sector, more than half of
methane emissions could be cut by making the most of
coal mine methane utilisation, or by flaring or oxidation
technologies when energy recovery is not viable.

Global Methane Tracker 2023

Tracking Methane Emissions from Methane is responsible for around 30% of the rise in
global temperatures since the Industrial Revolution, and
Oil and Gas Operations rapid and sustained reductions in methane emissions
Not on track are key to limiting near-term global warming and
improving air quality. The energy sector accounts for
nearly 40% of methane emissions from human activity
and we estimate that it was responsible for nearly 135
million tonnes (Mt) of methane emissions in 2022, a
slight rise from the amount in 2021.

Under the Net Zero Emissions by 2050 (NZE) Scenario,


total methane emissions from fossil fuel operations fall
by around 75% between 2020 and 2030. Policy makers
have at their disposal well-established policy tools that
have been demonstrated as effective in driving
reductions in these emissions in many contexts,
including leak detection and repair programmes,
technology standards and bans on non-emergency
flaring and venting.

Tracking Clean Energy Progress 2023

Methane emissions Methane emissions from oil and gas operations


must be the first to go

Energy Immediate and major reductions in methane


emissions are necessary for gas to play a
supporting role in energy transitions

In the Net Zero Emissions by 2050 Scenario, oil and


Policy natural
The launchgas of continue
the Globalto comprise
MethaneaPledgelarge part
needsof the
overall
to be a energy
watershed mix moment
to 2030. for Natural gas can play a
accelerated
supporting
action on methanerole in the energy transition by replacing
more polluting fuels or enabling low-carbon hydrogen
production with carbon capture and storage. It may also
The Global Methane Pledge was launched at COP26 in
deliver services that are di%icult to provide cost-
Private-sector strategies November
Voluntary 2021 to catalyse action to reduce methane
effectivelyinitiatives
with low-carbonmust work in tandem
alternatives, with
such as peak
emissions.
policies Led by
and regulations the United States and the
winter heating, seasonal to ensure
energy a definitive
storage and high-
European
fall Union,
in emissions the pledge now has 150 country
temperature heat for industry. However, fulfilling this
participants, which together are responsible for over
role requires minimising adverse social and
half of human-caused global methane emissions. By
environmental
In parallel with impacts
government and immediate and major
action, industry initiatives
joining the pledge, countries commit to work together
reductions
have in methane
an important role emissions are central
in driving rapid to this.
cuts and leading
in order to collectively reduce methane emissions by at
abatement efforts. In certain countries, companies may
least 30% below 2020 levels by 2030. Meeting the
be able to implement emission reductions more quickly
Global Methane Pledge target has the potential to make
Recommendations than governments, particularly where regulatory
an enormous impact on climate change, similar to the
capacity is limited. Multiple international oil companies
entire global transport sector adopting net zero
have set targets to restrict emissions or the emissions
emission technologies.
intensity of production, and many voluntary, industry-
Policy makers and private sector Policy makers and private sector
led efforts are attempting to reduce methane emissions
Design frameworks that are adapted and AsForm
alwaysa with
broad coalition
climate action, ofimplementation
stakeholders is key.
from oil and gas operations:
tailored to the challenges in view The pledge is non-binding and individual countries are
not assigned targets. Many participants issued new
Methane emissions are currently the second largest
policies and actions in 2022, and some countries may
cause of global warming. They come from a range of
be able to show measurable, verifiable reductions in
anthropogenic and natural sources. In the energy
emissions within a few years, and their progress should
sector, coal, oil and natural gas operations are each
be measured by demonstrable reductions. However, it
Authors and contributors responsible for around 40 Mt of emissions and nearly 5
may be several years before most countries can
Mt of leaks from end-use equipment. Around 10 Mt of
comprehensively track emission reductions with the
emissions comes from the incomplete combustion of
necessary confidence. Until then, a number of actions
bioenergy, largely from the traditional use of biomass.
could signal progress, such as developing national
Due to the near-term warming potential of methane
action plans or strategies, establishing policies and
emissions, reducing their level will be critical to avoid
reduction targets aimed at methane emissions, and
the worst effects of climate change.
updating national greenhouse gas inventories and
working to improve their quality.
Oil and gas operations are the largest source of
methane emissions from the energy sector and there is
clear potential to reduce them cost-effectively. Annual
investment of around USD 11 billion would be required to
mobilise all methane abatement measures in the oil and
If
gasallsubsectors.
countriesTaking adopted triednatural
average and tested
gas prices from
abatement
2017 to 2021 –policies,
before the this would
recent cut
price oil and
surge – thegas
methane leaks by
annual investment half is less than the total value
required
The
of theIEA Global Methane
captured methaneTracker
that couldDatabeExplorer tracks oil
sold, meaning
and
that gas methane
related methane andemissions
provides detailed
from oil country-by-
and gas could
country
be reduced estimates
by almost of emissions,
75% at an abatement
overall saving to the
technologies,
global oil and gas costs and regulation. The intensity of
industry.
methane emissions currently varies widely across
countries
In the Net that
Zeroproduce
Emissions oilby
and gas.Scenario,
2050 If all producing
methane
countries
emissions weredecline to match
rapidlythe emissions
in the comingintensity of
years, fulfilling
Norway, the best
this abatement performing
potential country,
by 2030. Thisglobal
resultsmethane
mostly
emissions
from the rapidfromdeployment
oil and gas operations
of emissionwould fall by
reduction
more
measuresthanand
90%. Upstream oilwhich
technologies, and gas operations
leads to the
contribute
eliminationmore of all than three-quarters
technically avoidable ofmethane
total emissions
globally,
emissionswith withinthe this
downstream
decade. segment accounting for
the remaining share.

Increased attention to methane abatement in recent


years, including new measurement campaigns and
technologies, may be having some effect. The
estimated rise in oil and gas methane emissions in 2022
leaves them slightly below where they were in 2019,
even though overall demand and fossil fuel production
are both back above pre-crisis levels.

Related content All Data Reports News & Commentaries All results

After slight rise in 2023, Methane Tracker The InternationalGlobal Methane Tracker IEA ass
Methane Emissions Observatory (IMEO)
methane emissions from 2024 evolvin
Interactive database ofiscountry
an initiative that aims to improve the world’s
fossil fuels are set to go and regional estimates for COP28
understanding of methane emissions by commissioning
into decline soon methane emissions and…
measurement studies and developing a public dataset
abatement options
that tracks methane emissions levels and abatement
efforts. However current uncertainty over emission
Press release — 13 March 2024 levels is no reasonFuelto delay
report action
— March 2024on cutting methane.

If all countries implemented tried and tested policies


that have already been used effectively in multiple
settings, it would cut global methane emissions from oil
and gas operations in half. Most standards in this
category do not require a robust measurement-based
Data explorer monitoring regime to verify compliance, although a News — 10 D
quantification and reporting system is usually
necessary. Tried and tested policies include leak
detection and repair requirements for fugitive sources,
equipment mandates for sources known to emit
significant volumes of methane, and measures
designed to limit non-emergency flaring and venting.

Our broad reviews of policies and regulations reveal


some success stories that other countries can look to
for inspiration: The United States and Canada have both
Energy system
Explore more implemented tried and tested approaches, although
there remains room to strengthen their requirements
and expand coverage further. The United States
approved the Inflation Reduction Act of 2022, which
provides incentives for methane mitigation and
establishes a tax on oil and gas methane emissions. In
2021, Canada announced a target to reduce methane
emissions from the oil and gas sector by at least 75%
from 2012 levels by 2030. In 2022, Nigeria issued
guidelines to support the elimination of routine gas
flaring by 2030 and a 60% reduction in fugitive
methane emissions by 2031. Colombia became the first
South American country to regulate methane emissions
from its oil and gas sector, including equipment
standards and leak detection and repair requirements.
Norway and the Netherlands have gone the furthest
The Energy Mix towards adopting a comprehensive regime, as
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have robust measurement and reporting requirements,
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incentives that encourage abatement action. Actions
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under the EU Methane Strategy will broaden these
efforts across Europe.

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