As the world gathers at COP29 in Baku, the urgency to address methane emissions is clearer than ever. Methane, the second-largest contributor to climate change after carbon dioxide, is responsible for approximately half a degree of current global warming.
While methane comes from a range of sources—including agriculture and waste—the energy sector, particularly oil and gas, presents the most immediate, cost-effective opportunity for rapid reduction. According to the International Energy Agency (IEA), over 75% of emissions from oil and gas operations can be cut with existing technologies, making it a priority area for policymakers and companies. Recent research also showed that in the case of South Korea, the energy sector must reach negative emissions by 2040, as the agriculture and waste sectors face inherent reduction limits.
Significant regulatory announcements have already emerged on Tuesday of Week 1 at the US-China-Azerbaijan COP29 Summit on Methane and Non-CO2 GHGs. Major economies and energy producing nations are stepping up their commitments to curb methane emissions. The United States, for example, finalized its Waste Emissions Charge (WEC) which applies to petroleum and natural gas facilities that emit more than 25,000 metric tons of carbon dioxide equivalent of methane per year. In addition, the United States launched the data portal for the Super Emitter Program, which leverages satellite data and other tools to detect large methane leaks and notifies companies, who are required to investigate the leak and respond in accordance with regulations from the Environmental Protection Agency.
John Podesta, Senior Advisor to the US President for International Climate Policy (left) and Zulfiya Suleimenova, Advisor the Kazakhstan president, Presidential Envoy on International Environmental Cooperation Kazakhstan (right) address audience at the US-China-Azerbaijan COP 29 Summit on Methane and Non-CO2 GHGs on Tuesday, November 12th.
Building on its 2023 announcement, Kazakhstan is also looking to finalize its National Program for Methane Emissions Reduction by COP30 in 2025. The country also announced the development of regulations aiming to reduce non-emergency methane venting and promote Leak Detection and Repair (LDAR) in its oil and gas sector. Similarly, as Azerbaijan hosts COP29, its state-owned oil company, SOCAR, announced aims to achieve near zero methane emissions in upstream operations and that it has developed a one-stop tool for methane monitoring.
The era of accountability and transparency for methane emissions in the oil and gas sector has arrived. The launch of methane detecting satellites this year by civil society, namely the Environmental Defense Fund’s MethaneSAT and Carbon Mapper's Tanager-1, will enhance global methane detection and tracking from early 2025 onward. Together with recent regulatory actions, these advancements represent a significant step forward, marking a global shift toward rigorous oversight of methane emissions from fossil fuels. As Afghan Izayev, Vice President of SOCAR, remarked at Tuesday’s Summit while outlining SOCAR’s near-zero methane goals for upstream operations: “You cannot escape it, there is no going back.”
In South Korea these developments have strong implications for public energy companies, particularly regarding their overseas methane emissions. SFOC’s latest report highlights the role of public companies like KNOC (Korea National Oil Corporation) and KOGAS (Korea Gas Corporation) in Korea’s global methane footprint. Though representing about 60% of equity-based yearly oil and gas production, these companies contribute to over 80% of associated methane emissions from Korean-owned overseas assets. This calls for a proactive approach from Korea’s public energy companies in leading mitigation efforts.
Actively reducing methane emissions from upstream assets is crucial not only to curb climate impacts but also to position Korea as a responsible global energy leader. By following the example set by the international community and aligning with frameworks like the Oil & Gas Methane Partnership (OGMP) 2.0 and the Oil and Gas Decarbonization Charter (OGDC), Korean public companies can make notable strides in methane reduction, aligning with Korea’s climate commitments and advancing a global methane mitigation movement.
Image copyright: SFOC. All images in this SFOC Insights blog were taken by the author during COP29 in Baku.
