Does the ¡°Zero Routine Flaring by 2030¡± Initiative focus on certain types of flaring?
Yes. The Initiative pertains to routine flaring at oil production facilities, defined as flaring that occurs during the normal production of oil, and in the absence of sufficient facilities to utilize the gas on-site, dispatch it to a market, or re-inject it. The typical situation this Initiative addresses is long-term continuous flaring for gas disposal where a gas market or injection capacity does not exist. The Initiative does not include the following non-routine or safety-related flaring events:
- exploration and appraisal operations;
- initial well flow-back;
- well servicing;
- process upset;
- safety or emergency situations;
- equipment or gas handling infrastructure malfunction;
- or de-pressuring equipment for maintenance.
The Initiative also excludes purge and pilot flaring necessary for safe flare operation, combustion of hazardous or polluting emissions, such as volatile organic compounds and hydrogen sulphide. Some flare gas sources (e.g., glycol treatment facilities, produced water treatment facilities) are so small and at such low pressure that it is environmentally more beneficial to utilize resources to reduce other flaring sources and other types of emission.
Why wait until 2030 to stop routine flaring?
The Initiative asks oil companies and governments to end ongoing routine flaring as soon as possible and no later than by 2030. Many of the projects developed to stop routine flaring are complex and can take considerable time and resources to plan and execute properly.
Isn't the Global Flaring and Methane Reduction Partnership (GFMR) doing the same as this new Initiative?
The ZRF Initiative is designed to prioritize flaring reduction and set a clear target for governments and industry to end routine flaring. GFMR is a partnership of governments and companies working together and with a team of professionals within the World Bank, supporting governments and national oil companies in their efforts to end routine flaring and to meet the 2030 target.
What are some common reasons why governments would NOT endorse the Initiative?
A majority of major oil-producing countries have already endorsed the Initiative and made the commitment to end routine flaring, but for some governments it can take time and dialogue to explain the consequences and nature of the commitment, and many governments need to follow a rigorous due diligence process before committing. Around 60 percent of total global flaring volumes are within government jurisdictions that have endorsed the ZRF Initiative. So this is significant progress, but there are still some large oil-producing countries yet to commit.
What are the common reasons why oil companies would NOT endorse the Initiative?
All major international oil companies have endorsed the initiative. We¡¯re hopeful others will follow. Typically, companies follow a rigorous due diligence process before committing to the Initiative.
Is "Zero Routine Flaring by 2030" a realistic goal?
Ending routine flaring by 2030 is a challenging goal, but a necessary one. Flare reduction projects often take considerable planning to be executed effectively but at a time of growing concern for the climate, it is essential that companies and governments take action to achieve "Zero Routine Flaring by 2030".
In line with this, gas flaring volumes have been largely downward from their 2003 peak of 172 billion cubic meters (bcm) to 139 bcm in 2022. In 2015, when the ZRF Initiative was launched, total gas flaring stood at 146 bcm.
What will oil companies and governments do differently after they have endorsed the Initiative?
Oil companies and governments will ensure that new oil fields are developed without routine flaring. In addition, they will proactively address the ongoing "legacy" flaring to reduce or end it at the earliest opportunity. The initiative also reinforces the idea that governments, oil companies, and institutions all need to work together to eliminate routine flaring on a global scale.
Are you forcing governments and oil companies into uneconomic investments under the Initiative?
The Initiative does not force governments or oil companies to invest in uneconomic projects. The Initiative aims to stimulate and create the right environment for cooperation between all stakeholders so that solutions are found through appropriate regulation, application of technologies, and financial arrangements.
What would it cost to eliminate routine flaring by 2030?
A desktop study by the World Bank in 2018 estimated the cost to end routine flaring is US$100 billion. This estimate is in line with studies from Iraq, Russia, and Nigeria, albeit these studies are few in number, which indicate an average cost of around 6-9 US$/ft3/day (85 - 125 US$/t CO2/day) for onshore projects. (Note: This is the cost to install sufficient capacity to utilize 1 ft3 of flared gas). It is important to note this estimate does not include revenues from utilization of the gas.
How will we know that endorsing entities abide by the Initiative and that we can trust the reported flaring volumes?
Endorsing governments and oil companies annually report their flaring and progress towards the Initiative. ľ¹ÏÓ°Ôº will report the same, including the aggregated volumes on this website. This is not to say it is an easy task to obtain accurate data, in part because the volume of most flaring is still estimated rather than metered. In addition, satellite monitoring will continue to provide independent estimates of flaring volumes for every country and operator.
Is the Initiative legally binding?
The Initiative is not legally binding, but it establishes a clear public commitment monitored through a variety of means, including government and company reports and satellite observations. Endorsers have repeatedly communicated they take the commitment very seriously.
What will the consequences be for an endorser not abiding by the commitments under the Initiative?
The Initiative is voluntary and does not include any enforcement measures or penalties. However, its visibility and high global profile encourage continuing commitment to the Initiative.
What does the World Bank do to support the Initiative?
ľ¹ÏÓ°Ôº (i) monitors the progress of the endorsers, (ii) continues to promote the Initiative and seek additional commitments, and (iii) supports governments and other stakeholders in their efforts to achieve zero routine flaring, particularly in developing countries. In addition to hosting the GFMR secretariat at its headquarters in Washington, DC, the World Bank is an active GFMR partner, contributing to the trust fund and providing broader support to ensure countries have robust, effective and efficient energy sectors.
One of the benefits of the ZRF initiative is that it helps keep industry focused on critical climate change mitigation efforts and also facilitates cooperation between all stakeholders so that solutions to ending routine gas flaring and venting can be identified and implemented. Governments and oil companies that have endorsed the ZRF initiative commit to annually reporting their flaring data and progress towards ending the practice.
All ZRF endorsing governments and companies commit to self-reporting their flaring data each year. ZRF is a voluntary but public commitment, monitored through both government and company reports and satellite-based estimates. Where flaring data is not self-reported by governments; estimates using GFMR / NOAA / Colorado School of Mines satellite data have been used. By publishing self-reported flaring data and satellite-based estimates on the ZRF website, we make clear which endorsers are making progress and fulfilling their commitment.
Do endorsing governments have gas flaring regulation in place that is consistent with the Initiative?
Many have regulations with the same objective, but not always in a manner that has proved effective. One of the objectives of this Initiative is to support governments develop effective policies and regulations. But for new oil field developments it is simple: the government makes it clear in bidding rounds and concession documents that oil field development plans require utilization (or re-injection) of the associated gas.
Why doesn't the Initiative address flaring at other locations than oil production sites?
Flaring at oil production sites represents by far the largest share of global flaring. Efforts are therefore focused there, rather than being diluted on all flaring sources.
Why doesn't the Initiative also address non-routine and safety flaring?
Safety flaring is both small in volume and essential for the safe operation of oil and gas production facilities. Non-routine flaring is often unforeseen in nature. For example, it could be due to issues with the operation of the facility, and as such is hard to mitigate. Oil companies are, of course, strongly encouraged to take measures to minimize all types of flaring.
How much of global flaring do the current endorsers of the Initiative represent?
Based on satellite estimates and publicly reported flaring data, together the endorsers represent around 60 percent of global flaring.