Policy and regulation: key drivers to ending routine flaring and achieving near-zero methane emissions

In a rapidly evolving global landscape, policymakers, industry leaders, and environmental experts are increasingly recognising the need for substantial changes in the oil and gas industry to address methane emissions and routine flaring. The issue was at the heart of a panel at ADIPEC on Monday. Titled The role of policy and regulation in ending routine flaring and achieving near zero methane emissions, the session was moderated by Martha Vasquez, Partner and Associate Director, BCG, and had six industry leaders from different geographies exploring strategies for combating emissions, offering diverse perspectives from leading voices across the sector.

Methane emissions have long been underestimated, noted Vasquez, citing a recent study by the Environmental Defense Fund (EDF), which found that US methane emissions were up to four times higher than previously estimated. In this context, Debbie Walker, OGMP 2.0 Senior Upstream Advisor, UNEP, talked about the importance of direct emissions measurement, describing it as a “game changer” for achieving emissions transparency. “This is not easy… we are designing the experiment as we go,” she said, noting that the real-time insights derived from precise data have enabled operators to discover and mitigate emissions sources rapidly. Walker noted that companies at OGMP Level 5 are applying direct measurement methods, enabling them to address methane leaks effectively as soon as they arise.

On operational efficiency, Ellis Renforth, President of Operations at Wood, talked about his company’s collaborative approach in the UK, where digital and asset management solutions enable operators to reduce methane emissions from aged infrastructure. “We’re coupling digital solutions with our asset knowledge, which enables real-time solutions,” Renforth explained, noting that their efforts in Iraq have successfully reduced carbon emissions by 10 million tonnes annually.

Georges Tijbosch, Chief Executive and Board Member, MiQ, asserted that technology alone is insufficient and that a robust regulatory framework is critical. Citing the recent EU methane regulation, he pointed out, “2025 will be a crucial year where proof of concept must transition to scale.” Tijbosch underscored that the existing technologies and frameworks, such as MiQ’s methane certification, are ready for deployment and have already been adopted by companies exporting to Europe.

He, however, also stressed that regulatory frameworks need to be flexible enough to account for regional disparities in infrastructure and resources.

Ryan Mattson, VP, Oil & Gas, GHGSat, on the other hand, sounded cautious and explained the risk of overly prescriptive regulations stifling innovation. “If regulations demand thresholds that technology can’t yet meet, we risk blocking advancements,” he argued. Instead, regulations should encourage innovation by setting achievable goals, with a long-term vision for continued improvement.

Aida Araissi, CEO of the Bilateral Chamber of Commerce, highlighted the role of incentives in driving methane reduction efforts, especially in emerging markets. Citing the Inflation Reduction Act (IRA) in the United States as a model for encouraging green projects, Araissi explained, “It’s opened up financing options for companies that wouldn’t have invested in green projects otherwise.” She also argued that aligning economic incentives with environmental goals can foster bipartisan support for methane reduction initiatives, transforming them into economic opportunities.

Zubin Bamji, Program Manager, Global Gas Flaring Reduction Partnership (GGFR), Energy and Extractives, World Bank concurred, noting that in developing countries, economic arguments often resonate more than environmental ones. Bamji outlined the World Bank’s Trust Fund, which offers grant funding for methane reduction projects in developing regions. “We want to ensure these projects aren’t just funded but are part of a long-term commitment to operational excellence,” he said.

Despite regional differences, panellists largely agreed on the importance of a unified global effort in the fight against methane emissions. Walker highlighted OGMP 2.0’s community-based approach, where companies share best practices to expedite progress across the sector. This collaborative framework has enabled companies to learn from each other, facilitating faster adaptation of effective methods for emissions reduction.

Tijbosch advocated for a global market for “low-methane” gas, where certified products fetch a premium, incentivising companies to commit to certification and transparency. “What you measure, you manage…certification ensures the integrity and accountability necessary to build this market,” he said.

The panel concluded with calls for immediate action to move from pledges to tangible outcomes. “2025 is the year for scaling,” Tijbosch asserted, urging companies to “deal with it” and implement available solutions. The message was clear: while the oil and gas industry faces significant challenges, the necessary tools, technologies, and frameworks are already in place. By integrating operational excellence with regulatory support, economic incentives, and global collaboration, the sector can effectively tackle methane emissions and end routine flaring, creating a pathway toward a sustainable energy future.