Global Flaring and Methane Reduction Partnership (GFMR)

• What is the environmental impact of methane? 
• How does oil and gas production contribute to methane emissions?
• How can we reduce the amount of methane emissions?
• What is being done about methane emissions from oil and gas operations?

What is the environmental impact of methane?

Methane, the primary component of natural gas, is a potent short-livedgreenhouse gas (GHG), with a global warming potential (GWP) around 28 times greater than the same mass of carbon dioxide emissions on a 100-year basis, and over 80 times more powerful on a 20-year basis. This makes methane second only to carbon dioxide in its contribution to climate change.

While methane has a significantly higher GWP than carbon dioxide, it also has a shorter atmospheric lifetime, and so after about 12 years, the methane in the atmosphere breaks down into GHGs with a lower GWP. In contrast, carbon dioxide can remain in the atmosphere for over a century.

As a result, the rapid reduction of methane emissions is:

• one of the most effective ways to quickly slow the rate of climate change,
• critical to global efforts to limit global warming to within 1.5 degrees compared to pre-industrial levels; and
• probably the single most important climate action we can undertake in the short-term.

How does oil and gas production contribute to methane emissions?

The oil and gas sector accounted for approximately 78 million tonnes of anthropogenic methane emissions in 2023 representing over 66% of the emissions from the energy sector, and industry estimates suggest that methane emissions from fossil fuels have been increasing in recent years. 

The oil and gas industry is a significant source of global methane emissions. In fact, methane emissions from venting, leakage, and flaring in the oil and gas sector are currently estimated to be responsible for roughly a quarter of global anthropogenic methane emissions. Oil and gas operations release methane into the atmosphere through the wasteful practices of intentional flaring and venting, as well as through the unintentional release of fugitive methane emissions. About half of global emissions from oil and gas production occur in developing countries.

Methane from fugitive emissions

During the production and transportation of natural gas (associated or non-associated gas), leaks and other unintentional releases result in methane escaping into the atmosphere. While gas composition varies, natural gas typically comprises about 80-95 percent methane, with the remaining comprising heavier hydrocarbons like ethane, propane, and butane.

In recent years the scale of these fugitive emissions has become apparent, with advances in methane detection technology allowing previously undetected leaks to be identified. These leaks, typically resulting from poor maintenance and broken equipment, can release enormous amounts of methane and are often labeled “super-emitters.”  

Methane from flaring

Flares are a direct source of methane emissions, as flares do not completely combust all the hydrocarbons in the gas stream. 

Typically, greenhouse gas (GHG) estimates of gas flaring emissions are based on two core assumptions: 

1. that flares have a methane destruction efficiency of 98%, resulting in 2% of the methane in the flare gas stream being emitted to the atmosphere un-combusted; and 
2. that flares are lit and operating properly 100% of the time. 

These assumptions, used widely for decades, have formed the foundation of estimates of GHG emissions from flaring. We estimate that in 2023 flaring resulted in 381 million tonnes of CO2 equivalent emissions (MMtCO2e), of which 336 MMtCO2e was in the form of carbon dioxide and 45 MMtCO2e was in the form of un-combusted methane.

However, until recently, neither of these assumptions had been rigorously tested in real-world operational environments. GFMR has developed an interactive toolkit to help demonstrate the likely GHG emissions from flaring across a range of circumstances. 

The 98% value for flare destruction efficiency is attributed to controlled studies conducted on behalf of the United States Environmental Protection Agency as far back as the 1980s. To date, flare destruction efficiency has not been widely field-tested because direct measurement in real world environments is highly complex and problematic. However, given its importance in understanding the methane emissions associated with flaring, it has become a critical area of research. 

A 2022 study published in Science found an average destruction efficiency of 95.2% across facilities in the Permian, Eagle Ford, and Bakken basins of the United States, significantly lower than the default 98% commonly used. This would indicate much higher methane emissions from flaring than previously thought.

Methane from venting

Venting sometimes occurs as a result of faulty flaring equipment and unlit flares. However, in the absence of flaring equipment or the infrastructure to bring the gas to market, some operators choose to routinely vent gas directly to the atmosphere without burning it. Given the high methane content of associated gas and methane’s high GWP, venting is a particularly polluting industry practice that can be easily be addressed with standard technologies (i.e. installation of a closed flare).  

In another study, researchers found that 3.2% of the flares assessed in the Bakken were operating unlit, i.e., directly venting gas, including methane, to the atmosphere. Using these findings and building on an earlier study in the Permian that found that 5% of the flares assessed were unlit, the study estimates an average of 4.1% of flares may typically be unlit across all three basins. 

Bringing together the measured destruction efficiency of 95.2% and the prevalence of unlit flares, the researchers suggest that flares in the Permian, Eagle Ford, and Bakken actually operate with an ‘effective’ destruction efficiency of 91.1%. If these findings are widespread across the industry, the true scale of the contribution of gas flaring operations to methane emissions could be significantly underestimated. 

While oil and gas operations are a significant source of methane and carbon dioxide emissions globally, the industry is also well placed to quickly respond to and address emissions through flaring and venting reduction and tackling fugitive methane emissions.

How can we reduce the amount of methane emitted?

Taking quick and decisive action on methane from oil and gas operations could avoid as much as 0.1 degrees Celsius of warming by mid-century—equivalent to zeroing out the emissions of every single car and truck in the world. Cutting methane emissions is low-hanging fruit in tackling climate change, and is vital to aligning the global energy sector with a global 1.5˚C warming trajectory. 

However, despite this, methane reduction efforts receive only a small fraction of the available climate finance.  Gas recovered from methane abatement efforts is often hard to use productively due to the dispersed nature of gas flares and methane leaks, the relatively low value of the recovered associated gas revenues compared to oil, and lack of access-to-market infrastructure. In addition, generally accepted methane abatement finance criteria have yet to emerge, and climate-focused investors are also often hesitant to support projects that aim to reduce emissions connected to oil and gas production. 

As a result, not all flare and methane reduction projects are able to attract commercial investment. Limited access to finance is further complicated in developing countries by challenging macroeconomic conditions and immature capital markets.  

Tackling fugitive methane emissions and unlit flares (venting) also requires the development of new technologies capable of not only detecting methane but of accurately measuring these emissions. The accuracy of detection and measurement technologies has increased dramatically over the last few years. Still, effective leak detection and repair (LDAR) often requires using several complementary approaches, from satellites and aerial surveillance down to on-the-ground survey teams operating handheld devices. 

In addition, flare elimination efforts also support methane reductions from other sources, such as venting and fugitive releases. Without an outlet to export or utilize the gas, any methane conserved from these sources will ultimately be sent to flare, and while there may be an overall emissions reduction, some methane is still released, and this energy source is still wasted. This highlights the importance of integrated flare reduction and gas management to overall oil and gas decarbonization strategies.

At any given time, flares may be:

• lit and operating effectively;
• lit and operating ineffectively, with incomplete combustion of methane;
• unlit and active, venting methane directly to the atmosphere; or
• unlit and inactive, with no associated emissions.

Research has revealed that the destruction efficiency of a flare is likely to be a product of many factors, including flare gas composition, flow rate, flare system design, operation and maintenance and local environmental factors such as wind speed.

While research continues, there are three critical steps operators can take now to reduce methane emissions from flaring:

1. Ensure flares are always lit and have automatic systems to re-ignite if they should go out.
2. Ensure flares are operating effectively and optimize flare destruction efficiency.
3. Reduce and ultimately eliminate the gas going to the flare, which should be the end goal.

What is being done about methane emissions from oil and gas operations?

Cutting methane from oil and gas production is low-hanging fruit in tackling climate change, and critical to aligning the global energy sector with a global 1.5˚C warming trajectory, as agreed in the Global Methane Pledge launched at COP26.

Despite this, methane abatement solutions are underfunded, considering their climate change mitigation potential, and low- and middle-income oil-producing countries need technical and financial support to implement methane reduction projects and policies.

Flaring and methane reductions can be achieved with currently available technology. However, in the case of flaring, the World Bank’s most recent Global Gas Flaring Tracker report shows that gas flaring continues unabated in many countries, despite available technology.

For the last two decades the World Bank’s Global Gas Flaring reduction Partnership (GGFR) provided technical advice and support to help developing countries end routine gas flaring, which is a significant source of carbon dioxide emissions. Launched at COP28 in December 2023, the GFMR Partnership builds on this legacy and has expanded the World Bank’s efforts to decarbonize the global energy system by also helping reduce the methane emissions associated with oil and gas production.

GFMR works with developing countries to end gas flaring and methane emissions as part of their journey to a low-carbon future, and supports their efforts to avoid wasting a valuable natural resource that could help accelerate economic development and improve energy access. By 2030, this new fund will disburse more than $250 million to support methane mitigation efforts and expects to leverage billions more in public and private sector finance.

We advise governments and operators on the technical solutions and regulations which will contribute to finally ending gas flaring and venting. This includes providing technical assistance, enabling policy and regulatory reform, institutional strengthening, and mobilizing financing to support action by governments and operators.

GFMR applies clear eligibility criteria so that support to developing countries drives long term emissions reduction projects and initiatives. For example, access to project development and financing support through GFMR will be subject to a commitment to

• measure and report emissions through the Oil and Gas Methane Partnership 2.0 framework,
• achieve near-zero absolute methane emissions by 2030 by reducing methane intensity to below 0.2%, and
• achieve zero routine flaring by 2030.

Cutting methane from oil and gas production is low-hanging fruit in tackling climate change, and critical to aligning the global energy sector with a global 1.5˚C warming trajectory, as agreed in the Global Methane Pledge launched at COP26. Emissions from the production and distribution of oil and gas also continue to represent a lost opportunity to provide communities worldwide with much-needed energy security and a relatively cleaner power source.

Despite this, methane abatement solutions are underfunded, considering their climate change mitigation potential, and low- and middle-income oil-producing countries often need technical and financial support to implement methane reduction projects and policies.

Methane reductions can usually be achieved with conventionally available technology. 

For the last two decades the World Bank’s Global Gas Flaring Reduction Partnership provided technical advice and support to help developing countries end routine gas flaring, which is a significant source of methane emissions. Launched at COP28 in December 2023, the GFMR Partnership builds on this legacy and significantly expands the World Bank’s efforts to support economic development while decarbonizing the global energy system by also helping reduce the methane emissions across the entire oil and gas value chain. 

GFMR works with developing countries to avoid wasting a valuable natural resource that could boost economic development and improve energy access and security. GFMR will leverage billions in public and private sector finance to support countries with the lowest capacity and resources to curb methane emissions.

To help governments and state-owned operators approach different sources of capital, GFMR finances feasibility studies of methane and flare abatement projects, covering all critical technical, regulatory, and financial aspects. This work not only facilitates access to additional GFMR grants for kick-starting flaring and methane reduction projects, but can also be used by governments and state-owned operators in developing countries to seek capital from commercial banks, investors, and other private or public sources.

GFMR also acts as a gateway for methane and flare reduction projects to the wider World Bank Group’s support for developing countries; in particular, the International Finance Corporation (IFC) for private sector financing transactions and the Multilateral Investment Guarantee Agency (MIGA) for guarantees and political risk insurance.

GFMR applies recipient and project eligibility criteria so that support for developing countries drives sustainable and scalable long-term emissions reduction projects and initiatives in the oil and gas sector. 

GFMR also advises governments and operators on the technical solutions and regulations that will contribute to finally ending routine gas flaring and venting. This includes providing technical assistance, enabling policy and regulatory reform, and institutional strengthening to support accelerated sustainable action by governments and operators.

The World Bank and GFMR are also supporting organizations that have joined the Methane Guiding Principles, a coalition of industry, multilateral institutions, non-governmental organizations, and academia working together to reduce methane emissions in the oil and gas sector. 

GFMR and organizations in the Methane Guiding Principles initiative published a Methane Flaring Toolkit, which provides an overview of important technologies and solutions to reduce methane emissions from flaring.

We continue to encourage all operators and governments to commit to the World Bank’s Zero Routine Flaring by 2030 (ZRF) initiative, which aims to end this 160-year-old industry practice. We have also published several important tools to support flaring and venting reduction, including our comprehensive review of Global Flaring and Venting Regulations, Financing Solutions to Reduce Natural Gas Flaring and Methane Emissions and, in partnership with IPIECA and IOGP, the Flaring Management Guidance for the oil and gas Industry.

More information 

More information about global efforts to reduce flaring and venting can be found in our Gas Flaring Explained section of the website and the Zero Routine Flaring by 2030 FAQ.