Global Flaring and Venting Regulations

May 5, 2022 - Governments of oil-producing countries have a vital role in ending routine gas flaring and venting (methane). Through effective regulation and policies, countries can create an operating environment that supports and incentivizes gas flaring and venting reduction. Many countries have regulations to curb flaring and venting, but not all approaches have proved effective.

The Global Gas Flaring Reduction Partnership (GGFR) helps governments create the right policies and regulations to end routine flaring and conserve or use the associated gas for productive purposes. GGFR's review of Global Flaring and Venting Regulations analyzes regulatory frameworks governing gas flaring and venting in 21 oil-producing countries, and identifies the most successful approaches to flaring and venting reduction.

The report's framework for comparing regulations will help regulators and policymakers reach Zero Routine Flaring by 2030, a global initiative to end this industry practice. The report also serves as a template for reducing methane emissions, which was central to the UN Climate Change Conference (COP26) in 2021.

Main Findings

• Global reduction of gas flaring and venting has been slow, but some countries have achieved success and can provide regulatory examples to those countries still lagging behind. Ten countries, some of which are developing nations with limited resources, have successfully reduced their flaring intensity, the amount of gas flared per barrel of oil produced, in the last decade, including Kazakhstan (-67 percent), Brazil (-60 percent), Colombia (-57 percent), Norway (-55 percent), United States (-46 percent), Canada (-40 percent), Indonesia (-38 percent), United Kingdom (-28 percent), Angola (-12 percent) and Egypt (-11 percent)
• Financial and non-financial incentives, combined with robust monitoring and enforcement, are key to successful gas flaring reduction. In several countries, stiff penalties have helped make alternatives to flaring and venting reduction more attractive.
• When fully enforced, carbon taxes, royalties, or fees payable on gas flared and vented can curb emissions. Adequate structuring of fiscal incentives and penalties is key to reducing flaring and emissions, providing energy access, and supporting developing countries' economic development.
• Flared and vented gas can replace more-polluting fuels in local communities, cutting emissions and expanding energy access for the poorest. In 2021, an estimated 144 billion cubic meters of associated gas were wastefully flared around the world. If captured and put to productive purposes, this gas could power the entirety of sub-Saharan Africa.

Further analysis of global gas flaring trends can be found in GGFR's 2022 Global Gas Flaring Tracker Report.