‘Zero Routine Flaring by 2030': a new global industry standard

Abstract

The World Bank-introduced ‘Zero Routine Flaring by 2030’ (ZRF) Initiative is well on its way to establishing a new global industry standard; one that is very important if governments and industry are to make significant strides to help mitigate climate change. Launched in 2015 by the UN Secretary-General and World Bank President, ZRF commits governments and oil companies to (a) not routinely flare associated gas in new oil field developments, and (b) to end routine flaring at existing (legacy) fields by 2030. (Routine flaring is defined as flaring during normal oil production operations in the absence of sufficient facilities or amenable geology to re-inject the produced gas, utilise it on-site, or dispatch it to a market. The ZRF Initiative clearly states that venting is also not an acceptable substitute for flaring.) A review of the governments and companies that have already endorsed ZRF reveals that many of the major producers recognise the value of making a public commitment and working to end a 150-year-old industry practice. There are now over 70 endorsers, but more governments and companies must join the global effort if there is to be real progress and establishment of a de facto industry standard. Those that have endorsed the ZRF Initiative say it has other tangible benefits. For example, the many international oil companies that already have a no-flaring policy for new oil field developments consider the Initiative a positive contribution because it will level the playing field – other companies would adopt the same good practice and governments would require it. So, the Initiative also reduces regulatory uncertainty and risk. To achieve ZRF on a global scale, collaborative action such as through the Global Gas Flaring Reduction Partnership (GGFR) – a public-private initiative comprising international and national oil companies, national and regional governments, and international institutions – will be required. GGFR is focused on increasing the use of natural gas associated with oil production by helping remove technical and regulatory barriers to flaring reduction, conducting research, disseminating best practices, and developing country-specific gas flaring reduction programs. GGFR is also focused on helping develop financing tools for flare-out projects, such as a new program with the Global Infrastructure Facility (GIF) to fund feasibility studies of solutions to monetize flared or vented gas from onshore and offshore oil production facilities.