Governments of oil-producing countries have a vital responsibility for ending routine flaring and venting. Through effective regulation and policies, they are uniquely able to establish an operating environment that incentivizes and advances gas flaring and venting reduction.

While many countries already have regulations addressing flaring and venting, not all approaches have proved effective at reducing this wasteful and polluting practice.

The Global Flaring and Methane Reduction Partnership (GFMR) works with governments to help create the right policies and regulations so routine flaring comes to an end and the associated gas is conserved or used for productive purposes. 

GFMR’s global regulatory review provides a systematic analysis of regulatory frameworks governing the flaring and venting of gas in 23 oil-producing countries and the European Union.  The report is designed to raise awareness, triggering action by identifying the most successful approaches to flaring and venting reduction. The framework for comparing regulations described in this report will help regulators and policymakers reach the goal of Zero Routine Flaring by 2030. The report also serves as a template for reducing methane emissions, which captured a great deal of attention at the UN Climate Change Conference (COP26) in 2021. 

Three clear findings emerge from the review. First, global reduction of gas flaring and venting has been much slower than what is possible. Second, successful reduction requires strong financial and nonfinancial incentives, combined with robust monitoring and enforcement capacity. Third, if flared and vented gas could be made available for use in nearby communities, it could replace more-polluting fuels, thus cutting emissions and potentially expanding access to energy among those who need it most. 

The World Bank Group, the largest source of multilateral finance for climate change mitigation in the developing world, provided more than US$26 billion in fiscal year 2021 to scale up the use of renewable energy, raise energy efficiency, and expand access to clean energy among the poor. The report you are viewing is an integral part of that effort.
 

Photo credit: Ed Kashi / World Bank

This report is a product of the staff of the World Bank. The findings, interpretations, and conclusions expressed do not necessarily reflect the views of the World Bank, its Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work.

The flare data graphs in this report are based on estimates by the GFMR using satellite data from the Colorado School of Mines. This approach is applied globally in a consistent manner. Deviations from other sources, based on reported flare gas volumes, are possible. No investment, policy, or other type of decision should therefore be based on this material without verifying the findings independently.

This study was carried out by a World Bank team led by Martin Oswald and Masami Kojima. The team included Paulo De Sa, Gurcan Salih Gulen, and Adam Pollard. 

The report benefited from regional insights offered by Huw Martyn Howells and Alexander Johannes Huurdeman and helpful comments from Zubin Bamji, Carlos Lopez, Susana Moreira, and David John Santley, all of the World Bank. The study team is also grateful to Harshit Agrawal, Oliver Braedt, Moez Cherif, Jane Olga Ebinger, Julia Komagaeva, Boris Nekrasov, and Yulia Rybakova, all of the World Bank, for providing assistance or points of contact for information on gas flaring and venting in their countries of responsibility or areas of expertise.

The report was prepared under the overall supervision of Demetrios Papathanasiou, Global Director for the Energy and Extractives Global Practice. Financing was provided by the GFMR. The study team thanks its GFMR partners—bp, Equinor, and Shell—which have supported this effort from its inception.  The study team is also grateful to the Colorado Oil and Gas Conservation Commission, the Petroleum Advisory Forum, and Numada for their support. This document was edited by Steven Kennedy and designed by Mark Lindop.

The World Bank's GFMR, formerly the Global Gas Flaring Reduction Partnership (GGFR), is a multi-donor trust fund composed of governments, oil companies, and multilateral organizations committed to ending routine gas at oil production sites across the world and reducing methane emissions from the oil and gas sector to near zero by 2030. 

GFMR focuses on providing grant funding, technical assistance, policy and regulatory reform advisory services, institutional strengthening, and mobilizing financing to support action by governments and operators, thereby jump-starting the deployment of flaring and methane reduction solutions.

GFMR advocates for ending routine gas flaring by garnering commitments for the Zero Routine Flaring by 2030 initiative (ZRF). Governments and companies that endorse ZRF commit to no routine flaring in any new oil field developments and to end routine flaring at existing (legacy) oil production sites as soon as possible and no later than 2030. 

Contact us

For more information about GFMR or the report, please contact Adam Pollard.