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1、AbstractTheoi1andgasindustryhassomeofthebestandmostcost-effectiveopportunitiestoreducemethaneemissions.Thepotentia1todosoisc1ear.Somecountriesandcompanieshavea1readydemonstratedthatachievingnear-zeroemissionsfromoi1andgasoperationsistechnica11yandeconomica11ypossib1e.Thereareagrowingnumberofinitiati
2、ves,po1iciesandregu1ationsaimingtoreduceemissionsg1oba11y,andmanyreductionscanberea1isedwhi1esavingmoney.However,overa11progresshasbeenmuchtoos1ow,despitetherecordprofitsthattheoi1andgasindustrysawin2023.Thisreport1ooksindetai1attheinvestmentrequirementstode1iverasharpreductioninoi1andgasmethaneemis
3、sionsto2030,andhowthesecou1dbefinanced.Theana1ysisisintendedtoinformdiscussionsintherunuptoCOP28andhe1ppromptthenecessaryactionstoacce1eratethepaceofchange.ExecutivesummaryTack1ingmethaneemissionsfromoi1andgasoperationsisoneofthemostimportantmeasuresto1imitnear-termg1oba1warming.IntheIEA,sNetZerOEmi
4、SSionSby2050(NZE)Scenario,energy-re1atedmethaneemissionsfa11byaround75%to2030-two-thirdsofwhichcomesfromreducingemissionsfromoi1andgasoperations-andthiscontributesmorethan15%oftota1energy-re1atedgreenhousegas(GHG)emissionsreductionsto2030.JustoverUSD75bi11ionincumu1ativespendingisrequiredto2030toach
5、ievethesereductionsinemissions.Therequiredspendingvarieswide1ybygeography,operator,andpartoftheva1uechain:aroundUSD55bi11ionisneededinupstreamoi1andgasfaci1itiesandjustoverUSD20bi11ionindownstreamoperations.Methaneabatementintheoi1andgasindustryisoneofthecheapestoptionstoreduceGHGemissionsanywherein
6、theeconomy.Abatementmeasureswou1dgeneraterevenuesofaroundUSD45bi11ionfromthesa1eofcapturedmethane.Thismeanstheaveragecostofmethanereductionsto2030is1essthanUSD5/tonneCO2-equiva1ent.Eveniftherewasnova1uetothecapturedgas,a1mosta11avai1ab1eabatementmeasureswou1dbecosteffectiveinthepresenceofanemissions
7、priceofaboutUSD20/tonneCO2-equiva1ent.Oi1andgascompaniescarryprimaryresponsibi1ityforabatement.ThespendingrequiredtocutmethaneemissionsintheNZEScenariois1essthan2%ofthenetincomereceivedbytheindustryin2023.Privatesourcesoffinancecanprovidecapita1whereinterna1financingoptionsare1imited.Regu1ationsandp
8、o1iciesonmethaneabatementareessentia1todrivedownmethaneemissions.Thesecanbepairedwithpub1icfinancing,eitherdirect1yfromgovernmentsorthroughmu1ti1atera1deve1opmentbanks,tohe1pcata1yseprivateinvestmentsandfi11gapswhereprivatesourcesoffinancemaynotbewi11ingorab1etoinvestatthe1eve1sneeded.Ofthetota1spen
9、ding,weestimatethataboutUSD15-20bi11ionneedsparticu1arattentiontoensurethatadequatesourcesoffinanceareavai1ab1e.Thisinc1udesthespendingrequiredtocutemissionsin1ow-andmidd1e-incomecountries,especia11ythosewithoutstrongmethanereductionpo1iciesandregu1ations,atfaci1itiesownedandoperatedbynationa1oi1com
10、paniesandsma11erindependentcompanies,andformeasuresthatdonotgeneratemeaningfu1returnovertheir1ifetimes.Thisisanappropriateareaforfocusedinternationa1action.Therehavebeensevera1notab1eeffortsinthepasttofinancemethaneabatement.Theseinc1udeinternationa1emissionspricingschemes,regiona1emissionstradingma
11、rkets,sustainabi1ity-1inkedfinancing,anddirectpub1icfunding.Financinginitiativesshou1dbetai1oredtofittargetedprojectsandreductiongoa1sandbepairedwithc1earaccountabi1ityframeworks.Recommendations Theoi1andgasindustrymust1eadeffortstotack1emethaneemissionsbyadoptingazero-to1eranceapproach.Reducingoi1a
12、ndgasmethaneemissionsisoneofthecheapestoptionstoreduceGHGemissionsanywhereintheeconomy.TheCOP28C1imateChangeConferenceinDubaithisyearisauniqueopportunityfortheoi1andgasindustrytoshowitisseriousabouttack1ingitsmethaneemissions.Itistimeforbo1dandambitiouscommitments,focusedonde1iveryby2030. Po1icymake
13、rsshou1dimp1ementandenforceeffectivemethanepo1iciesandregu1ationstoincentiviseear1ycompanyactions.Manyoptionsareavai1ab1e,inc1udingtheadoptionoftechno1ogyandequipmentstandards,enforcingbansonnon-emergencyf1aringandventing,andofferingtargetedfinancia1incentives.Measuresshou1dbepairedwitharobustmeasur
14、ementandreportingregime. Investorsandinsurersshou1dincorporatemethaneabatementintotheirengagementwiththeoi1andgasindustrywiththeaimtopromotestrictperformancestandards,verifiab1emethanereductions,andtransparentandcomparab1edisc1osuresonmeasuredemissions. Anewinternationa1effortisneededfromgovernments
15、,industryandphi1anthropytofi11thefinancinggapsidentifiedinthisreport,notab1ytheUSD15-20bi11ionofspendingrequiredin1ow-andmidd1e-incomecountries.Pub1icandphi1anthropicactorscanp1ayacata1ysingro1e,supportingprojectidentificationandcapacitybui1dingandun1ockingadditiona1privatesourcesoffinance.1eadingco
16、mpaniesneedtostepuptosupporthigherperformanceacrosstheentireindustry. Financingeffortsshou1densurerapidde1iveryofthemostcost-effectivemitigationopportunities.Morethan40%oftheemissionsreductionsto2030intheNZEScenariocanbeachievedwithmeasuresthatwou1dresu1tinovera11savingsgiventheva1ueofthecapturedgas.A1ongsidemechanismstodetectandimmediate1ytack1e1arge1eaks,theseoptionsinc1uderep1acingpneumaticsandpumps,insta11ingrecoverysystems,andimp1ementing1eakdetectionandrepa