The number of companies and countries making commitments to cut methane emissions rose again in 2023. The main vehicles for such commitments were the Global Methane Pledge (GMP), updated Nationally Determined Contributions (NDCs) under the Paris Agreement, the Oil and Gas Decarbonization Charter (OGDC), and national methane action plans. Some took concrete steps towards the introduction of new regulations and requirements on methane, including the United States, Canada and the European Union. These announcements on oil and gas are particularly notable since they broadly align with the reductions required in the IEA’s NZE Scenario.

In total, if all methane pledges made by countries and companies are implemented and achieved in full and on time, this would be sufficient to cut methane emissions from fossil fuels by 50% by 2030.

The countries that remain without government-led commitments to reduce methane from fossil fuels include Algeria, India, Iran, Russia,1 Syria, Thailand and Venezuela. These seven countries account for around 30% of global methane emissions today from fossil fuels. Some of the largest oil and gas companies have also not made any public commitments to reduce methane emissions, including Canadian Natural Resources, Kuwait Petroleum Corporation, the National Iranian Oil Corporation, PDVSA, Pemex, Sinopec, Sonatrach, Surgutneftegas and Turkmengaz.

For oil and gas, high-level commitments on methane would lead to a near 55% reduction in emissions by 2030. However, detailed methane policies and regulations that are planned or in place would cut emissions from oil and gas operations by around 20% by 2030. This large gap highlights that many countries and companies have not yet introduced the specific policies and measures needed to achieve their high-level commitments.

Commitments to cut methane emissions from coal operations are less extensive and the implementation gap is even larger. High-level commitments would lead to a 40% reduction in coal mine methane emissions by 2030 and the firm policies and regulations in place would cut emissions by less than 10% by 2030. Major emitters of methane from coal mines, both countries and companies, need to increase action on reducing emissions in this area. Sectors which rely on coal for inputs, such as the steel sector, could work to incentivise methane emissions reductions in their downstream suppliers as well.

The gap between high-level commitments and detailed implementation plans is visible across the board. For example, the GMP has 156 participants, yet less than one-third of these countries have provided specific details on the reduction strategies they will use to bring down emissions by outlining sector-specific methane targets or developing national methane action plans.

One area that deserves particular attention is the inclusion of methane emissions within countries’ NDCs. Countries party to the Paris Agreement are asked to establish NDCs and update them every five years. There are more than 190 NDCs in place: around 35 include targets for reducing methane emissions (from all sectors of the economy) and a further 20 set out specific measures to reduce methane emissions from fossil fuels. These include actions to minimise venting, flaring and fugitive emissions from the oil and gas sector and to minimise methane emissions from coal mining.

Updates to NDCs and long-term low-emissions development strategies – to be submitted in 2024 – would benefit from methane-specific commitments, and some countries have already highlighted that they will include them. The Sunnylands Statement, for example, indicates that the United States and China will develop methane reduction actions or targets for inclusion in their 2035 NDCs. Possible targets that could be incorporated in all NDCs include: targets to reduce fossil fuel methane emissions by 75% by 2030; commitments to implement measurement, monitoring, verification and reporting (MMRV) frameworks; and policy and regulatory measures that target methane, such as leak detection and repair (LDAR) programmes and restrictions on non-emergency flaring and venting. The IEA is providing support to countries to develop updates to their NDCs, offering information on emissions estimates, abatement opportunities, policy options and related costs.

Several countries and regions adopted or proposed new regulations on cutting methane emissions in 2023. Recent announcements by Canada, the European Union and the United States are broadly in line with the IEA’s NZE Scenario.

• The United States finalised new regulations in December 2023 that tighten requirements on new and modified oil and gas facilities and set guidelines for states to regulate existing sources. The new rule also establishes a first-of-its-kind Super Emitter Program that allows the government to act on emissions events detected remotely by qualified third parties, such as IMEO’s Methane Alert and Response System. The Environmental Protection Agency estimates that the rule will reduce emissions by nearly 80% over the period from 2024 to 2038.
• Canada advanced new rules designed to reduce emissions from the oil and gas sector by at least 75% below 2012 levels by 2030. These new regulations tighten requirements dating from 2018, including restrictions on flaring and venting, equipment standards, and mandatory risk-based LDAR. The new regulation also creates a new alternative, performance-based compliance pathway. If companies install continuous monitoring systems and respond to detections according to specific timelines, they can be exempt from other requirements in the regulation.
• The European Union announced an agreement on a new methane regulation that requires gas, oil and coal operators throughout the bloc to report regularly on their emissions for both operated and non-operated assets; ­­carry out regular LDAR; stop routine flaring and venting; and limit non-routine venting and flaring to unavoidable circumstances. In another first, the regulation will also apply an emissions standard to imported fuels, leveraging the EU’s position as a major importer. This will require gas, oil and coal imported into the European Union under contracts concluded after January 2027 to meet requirements equivalent to those for domestic sources.

Other countries already had regulations in place, including Colombia, Mexico and Nigeria. A number of other countries – including Brazil, China and Kazakhstan – also recently announced plans to develop new regulations. China recently released a methane action plan that sets out its intention to develop and expand regulations, technical standards, and policy frameworks to monitor, account for and “control” methane emissions from coal mines and from oil and gas methane leaks.

There are many tried and tested policy options that can be adopted by countries, including requirements for LDAR, equipment mandates, and measures designed to limit non-emergency flaring and venting. These can deliver immediate and tangible benefits for countries that are still in the early stages of regulating methane emissions from fossil fuels. These steps can be followed by additional policies to deliver emissions cuts in line with the overall 75% reduction goal – including emissions pricing, financing instruments, and performance standards, with robust measurement-based monitoring regimes supporting these efforts.

The inclusion of the first-ever methane standard on imports in the European Union agreement highlights the role trade measures can play in encouraging methane reductions. For many countries, domestic energy methane emissions are significantly lower than the methane emissions that stem from oil, natural gas and coal imports. For example, in advanced economies, methane emissions that are caused along the supply chain for oil and gas imports are around 15 Mt annually, similar to the level of emissions that occur within their borders from domestic production and local distribution. 

Fossil fuel importers can work to support methane reductions in producer countries through various measures, such as diplomatic action, incentives, technical and institutional support, and trade measures. Examples include financing instruments, emissions certifications, price premiums for lower intensity gas, minimum intensity standards and border adjustment mechanisms. Efforts are more likely to be effective if paired with technical and institutional support to enhance regulatory capacity and avoid distortions in the market.

An example of this in action is the EU external energy engagement strategy, which aims to provide technical assistance to partners to deploy methane abatement technologies through a “You Collect, We Buy” scheme, which the European Union announced it will pilot with Algeria. Separately, Japan and Korea announced the Coalition for LNG Emission Abatement toward Net-zero (CLEAN) project, under which large purchasers of LNG will collect information from suppliers on the status of methane reduction efforts to enhance the availability of information on LNG-related emissions.

There are a large number of international methane initiatives underway that look to provide support for increased action, and more are being created each year. The IEA is engaged in or affiliated with many of these efforts, which include:

• UNEP’s International Methane Emissions Observatory (IMEO), which delivers training and – through the Oil & Gas Methane Partnership 2.0 – technical guidance to governments and companies looking to reduce methane emissions from the oil and gas sector, in partnership with Carbon Limits, the Environmental Defense Fund and the IEA. It also undertakes scientific studies and analysis with data provided through on online portal.
• The World Bank's Global Flaring and Methane Reduction Partnership, which focuses on providing grant funding and mobilising financing to support action by governments and operators to deploy flaring and methane reduction solutions in the oil and gas sector.
• The Climate and Clean Air Coalition, which also offers funding and support for signatories of the Global Methane Pledge to develop national methane roadmaps or action plans.
• The Clean Air Task Force, which provides free assistance to countries interested in better understanding their emissions, policy options and potential solutions.
• The Global Methane Hub, which supports methane reduction efforts through grant-making and partnerships.
• There are also a number of organisations providing free tools and resources for methane abatement, including the Oil and Gas Climate Initiative, the Global Methane Initiative and the Methane Guiding Principles.

Newcomers to the methane issue may find the number of initiatives and acronyms bewildering: all stakeholders active in this space need to work together to facilitate understanding and avoid duplication of efforts.

Not all key areas that need to be addressed have received the same attention. For example, many of the initiatives include requirements on measurement and reporting, while there is less of a focus on finance and project development. Few also focus on coal methane mitigation, with the majority of current energy sector initiatives focussed either on economy-wide mitigation or on oil and gas.

Voluntary initiatives must work in tandem with policies and regulations to ensure a definitive decline in methane emissions. When conducted in parallel with government action, industry initiatives play an important role in driving rapid cuts and leading abatement efforts. Multiple international oil and gas companies have set targets to restrict emissions or the emissions intensity of production, and many voluntary, industry-led efforts are attempting to reduce methane emissions from oil and gas operations and sharing best practices on methane management. Yet many companies have not committed to act on methane, and several of the existing voluntary initiatives lack accountability mechanisms.

Investors and insurers can help bridge that gap. A number of banks and funds are aiming to incorporate methane abatement into their engagement with the fossil fuel industry. For example, the European Bank for Reconstruction and Development supports methane abatement and is working with Uzbekistan to help the country deliver its Global Methane Pledge commitments. Financiers can promote strict performance standards, verifiable methane reductions, and transparent and comparable disclosures on measured emissions.

While many countries and companies have expressed a high-level political commitment to bring down methane emissions, this is only the first step. Developing and implementing effective policies and regulations that can tackle energy-sector methane emissions will require external support in many cases. Specific needs include:

• Accurate data on methane emissions to establish a baseline, including data on sources, production, emissions rates and factors. Initial baselines may be determined primarily by emissions factors and estimates while companies improve monitoring and reporting.
• Information on available options to reduce emissions and their abatement potential, together with cost estimates and the value of potential revenue that could be generated to understand what measures may be most cost-effective.
• Knowledge about policy and regulatory options that can bring down emissions, as well as information about how they function and under what circumstances they can be most effective.
• Technical assistance and knowledge sharing from peer countries, including examples of what has worked in similar contexts and lessons learned from prior applications.
• Adequate resources – including staff, technical know-how, and equipment – to effectively develop, issue and, most importantly, implement and enforce new policy or regulations.

Together with international partners, the IEA is stepping up its support in each of these areas for policy makers and companies looking to take action to reduce methane emissions from the energy sector. This includes making available the data underlying the Global Methane Tracker on emissions, abatement, costs, and policy options. The IEA is also exploring organising technical assistance programmes for interested countries and facilitating peer-to-peer exchanges. The IEA will also continue its focus on tracking the development and implementation of pledges through policies and initiatives in order to gauge progress and aid stakeholders in making sense of the methane landscape.