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<\/a>It\u2019s no surprise that COP 27 in Sharm El-Sheikh, Egypt closed with few groundbreaking headlines. Going in, we knew it would be\u00a0 a \u201cworking COP\u201d<\/a> focused on steps to advance the commitments made at previous gatherings. And while some important steps were made<\/a> on technical issues and a historic agreement on funding arrangements for loss and damage was sparked, there was real progress in the fight to reduce methane, the pollutant driving nearly a third of current warming.<\/p>\n<\/p>\n
Details, Details: Quiet Action at COP 27 Tees Up a Big Year for Methane <\/a><\/span>Share on X<\/a><\/span><\/strong><\/p>\n Key Countries Advance Real Regulation<\/strong><\/p>\n The biggest methane news at COP 27 came from the United States \u2014 number one in both global oil and gas production and methane pollution\u2014 which announced a substantial strengthening<\/a> of long-awaited EPA rules<\/a> that will dramatically cut emissions from tens of thousands of wells, pipelines and other facilities \u2014 including high-polluting, low production wells<\/a> that had previously been left out. Additionally, the proposal introduces measures to reduce wasteful flaring.<\/p>\n Canada, the world\u2019s fifth largest producer, announced the main elements of an ambitious new set of oil and gas methane regulations<\/a> that it will formally propose early next year<\/a>. Canada\u2019s Minister of Environment and Climate Change also reaffirmed the country\u2019s commitment to cut overall methane emissions by at least 75 percent by 2030.<\/p>\n Mexico\u2019s state oil company PEMEX rounded out North American momentum with its announcement<\/a> to develop and action a plan by first half of 2023 to cut methane pollution, with technical support from the U.S. Environmental Protection Agency.<\/p>\n Nigeria, another major producer, became the first African country to regulate methane emissions from its oil and gas sector<\/a>. And China, affirmed that it has drafted a national methane emissions plan<\/a> that focuses on data and measurement and information sharing on best practices and technology.<\/p>\n With the European Union set to enact oil and gas methane regulations in 2023, producers, investors and other stakeholders now know beyond a doubt that global action to reduce methane emissions is a permanent part of their competitive landscape. These measures will doubtless set others in motion.<\/p>\n Buyers and Sellers Get into the Act<\/strong><\/p>\n \u00a0<\/strong>COP 27 ushered in two new initiatives that make it easier for buyers and sellers of internationally-traded natural gas to collaborate on minimizing methane across oil and gas supply chains.<\/p>\n President Biden announced a Joint Declaration from Energy Importers and Exporters<\/a> including the United States, the European Union, Japan, Canada, Norway, Singapore, and the United Kingdom, designed to bring energy exporters and energy importers into alignment around reduced flaring and new measurement and reporting standards to make it easier to track and accurately document emissions associated with production and transport.<\/p>\n Following last year\u2019s Global Methane Pledge, the new pact seeks to create a market for low methane-intensity natural gas<\/a> by channeling more and better emissions data into concrete policies, commercial agreements, and emission mitigation plans. By using resources already in place through the Oil & Gas Methane Partnership (OGMP), participants will achieve results quicker and with greater certainty.<\/p>\n In Malaysia, state-owned Petronas set<\/a> strong methane reduction targets and signed up to OGMP, the only direct measurement-based reporting framework for methane emissions from the oil and gas sector. The company also entered into agreements with Japan to jointly pursue carbon neutrality strategies.<\/p>\n Climate security = energy security<\/strong><\/p>\n \u00a0<\/strong>Even as markets in Europe and around the world continue to struggle with supply shocks caused by Russia\u2019s invasion of Ukraine, countries gathering at COP 27 increasingly embraced the core idea that energy security and climate security are two sides of the same coin \u2014 a common problem that can only really be addressed by accelerating the global transition away from fossil fuels.<\/p>\n Oil and gas companies worldwide waste at least 210 BCM of natural gas a year through leaks, flaring and other emissions. That\u2019s nearly 25% more gas than Europe was importing from Russia before the Ukraine war. At a time when Europe is worried about keeping homes warm and lights on, the quickest and cheapest option for filling the gap created by the loss of Russian gas is to simply stop wasting gas that\u2019s already being pulled out of the ground.<\/p>\n The good news is that much of this can be done without having to build expensive, long-lived infrastructure that would incentivize continued oil and gas dependence, something European policymakers have made clear they do not want.<\/p>\n