Page 7 - AfrElec Week 03 2021

AfrElec COMMENTARY AfrElec

methane emissions is very cost-effective for oil All these countries are major gas produc-
and gas companies. ers, and gas flaring, when gas is produced as a
Unlike CO2, there is already a price for meth- by-product of oil production, is a major source
ane everywhere in the world – the price of nat- of methane.
ural gas. “In this crucial year for climate action lead-
This means the costs of improving operations ing up to COP26 in Glasgow in November, this
or making repairs to prevent leaks can often be is the moment for governments to raise ambi-
paid for by the value of the additional gas that is tions not only on CO2 but also on methane,”
brought to market. Birol said.
“We believe that industry must act, visibly “One important avenue, especially for coun-
and quickly,” Dr Birol said. “But there is also a tries with large oil and gas sectors, will be to
strong role for government policies: to incen- include commitments on methane in their new
tivise early action by companies, push for trans- or updated pledges in advance of the COP meet-
parency and improvements in performance and ing. This is also the moment for companies to
support innovation in getting results.” put all their weight behind this effort.”

Risks ahead Iinvestor concerns
The IEA has published guidance for govern- The case for action is not just environmental
ments and regulators to build on the momentum or reputational. There are increasing signs that
of 2020 and to continue to drive down methane consumers are starting to look carefully at the
leaks. emissions profile of different sources of gas when
The guidance, called Driving Down Methane making decisions on what to buy.
Leaks from the Oil and Gas Industry: A Regula- Investors and buyers are now taking into
tory Roadmap and Toolkit, offers a step-by-step account the carbon footprint of gas production
guide on how to develop or to update regulation projects, as well as the environmental record of
on methane. companies, into account when making invest-
Its advice draws on analysis of how more ment decision.
than 50 countries, states or provinces – from the Therefore, a gas producer which does not
United States to Nigeria, from Iraq to China and make realistic and credible efforts to promote
Russia – have tackled methane emissions from a methane abatement is also one that is taking
regulatory perspective. commercial risks.™

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