Energy Gang: Bonus Episode from COP29 — Getting Real About Methane Emissions

Podcast: Energy Gang
Host: Ed Crooks (Wood Mackenzie)
Guests:

• Bjørn Otto Sverdrup (Chair, Executive Committee of the Oil and Gas Climate Initiative - OGCI)
• Enrique Pezera (Regional Lead, Latin America, Global Methane Hub)
  Date: December 10, 2024
  Location: Live at COP29, Baku, Azerbaijan

Main Theme:

This special episode, recorded at COP29 in Baku, confronts the persistent challenge of methane emissions—a greenhouse gas responsible for roughly 30% of human-induced global warming. While some diplomatic progress was made (with more countries joining the Global Methane Pledge), global methane emissions continue to rise. Host Ed Crooks speaks with leaders from industry and civil society to examine the barriers to progress and the pathways toward significant methane reduction by 2030.

Key Discussion Points & Insights

1. Methane’s Outsize Role and Elusive Solutions

• Methane is the second most important greenhouse gas after CO₂, responsible for ~30% of recent anthropogenic global warming. (00:25)
• Main emissions sources: oil/gas, coal, agriculture, waste.
• Capturing methane can be economically attractive for the energy sector because it's the main component of natural gas.
• Despite nearly 160 countries joining the Global Methane Pledge (30% reduction by 2030 vs 2020 levels), total emissions are still climbing. (01:45)

2. The Oil and Gas Decarbonization Charter: Ambition vs. Reality

Guest: Bjørn Otto Sverdrup, OGCI (04:44–20:51)

Charter Scope and Industry Progress

• The Decarbonization Charter unites 55+ international and national oil & gas companies, representing 43% of global production, in a commitment to slash operational emissions, end flaring, and tackle methane by 2030.
• Companies involved must set targets, report progress transparently, and invest in future energy systems. (06:42–07:42)

“From the beginning we have said you should never join this group if you just want to look good, you should join this group if you want to improve.”—Bjørn Otto Sverdrup (08:53)

Are These Just Pledges, or Is There Real Progress?

• While the core OGCI group (12 majors) reports >50% reduction in methane and flaring over 5–6 years, global emissions are still rising. The focus is shifting to rigorous baseline setting and public reporting. (09:40)
• National oil companies are increasingly engaged; motivations vary from climate concern to economic efficiency (energy loss is costly).
• Technology transfer and peer assistance are encouraging, e.g., drone-based detection systems shared between international and national companies. (11:20)

“Some of these improvements can be made fairly easily. So having this awareness on the top and also the training of professionals on how to reduce methane leaks or reduce flaring is...encouraging.”—Bjørn Otto Sverdrup (11:54)

COP29, Finance, and Carbon Markets

• Finance and robust carbon markets are seen as critical for deployment and scaling of methane mitigation.
• There’s a “brutal recognition” that hitting the 1.5°C target is increasingly unlikely—carbon removals and market mechanisms will have to expand rapidly. (14:45)

“Many technological solutions are still struggling to be picked up by market dynamics...carbon markets may play a very important part in completing the business models for both low-carbon solutions [and] deeper methane cuts.”—Bjørn Otto Sverdrup (14:39)

Energy Industry’s Place in Climate Talks

• Inclusion of oil & gas in UN climate negotiations is a pragmatic necessity, given their operational footprint and emissions.
• Oil & gas companies claim to be significant investors in renewables now, with $100 billion invested in low-carbon solutions. (17:30–18:00)
• Sverdrup calls for accountability: “You should hold us accountable to the things we're saying. And I promise you we will be back again one year from now reporting progress and being as transparent as possible.” (19:23)

Host Candidly Challenges Greenwashing Concerns

“I have to say that the oil and gas industry was not included in climate negotiations...because it seemed like the industry had not demonstrated it was a good faith actor.”—Ed Crooks (16:57)

3. The Role of Measurement, Policy, and Finance in Methane Reductions

Guest: Enrique Pezera, Global Methane Hub (21:01–35:56)

Origins and Mission

• The Global Methane Hub, launched after COP26, is a philanthropic entity targeting methane in energy, agriculture, and waste.
• Main levers: Funding MRV (monitoring, reporting, verification); transparent, actionable data; policy support at all levels. (21:46–22:30)

“One of the biggest challenges with methane emissions is what you don't see, you don't care. So you need to see and you need to quantify these emissions and you need technology for that.”—Enrique Pezera (22:09)

Why Are Emissions Still Rising?

• Global emissions are rising, but the pace is lower in the energy sector due to regulatory and technological advances.
• Success stories (Canada, Colorado, California) show deep cuts are possible now, often at net zero or even negative cost, especially in oil & gas. (24:50)

“75% of oil and gas methane emissions can be mitigated and more than 40% of the total can be mitigated at net zero costs.”—Enrique Pezera, referencing IEA report (24:25)

Regional Progress: Latin America

• Colombia: methane mitigation law (oil, gas, coal) is already lowering emissions.
• Mexico and Brazil: regulation is advancing. Argentina: private sector action continues despite government climate skepticism—methane reduction seen as a market necessity for EU exports. (25:41–28:17)
• In energy, the reduction target is 75% by 2030.

Will Emissions Finally Drop Soon?

• Pezera is optimistic: recent regulatory and technology developments could flip the trend as soon as next year. (29:14)
• Stresses again the dual need for energy transition and methane mitigation: “It's not one or the other. The two need to come at the same time.” (29:57)

Critical Role of Financing and Carbon Markets

• Methane makes up nearly 45% of global warming effect but gets only 3% of climate finance.
• Urgent needs:
  • Clear investment taxonomy—so methane mitigation in oil & gas is labeled ‘green’ and is bankable.
  • Strong carbon pricing to reward methane reductions proportionate to its warming impact. (32:17–33:39)
  • More flows to the Global South, where the majority of methane emissions originate.

“If a big financial institution is financing methane mitigation in an oil field in Angola, it is considered a green investment because that money is being channeled towards a very important climate issue. But that infrastructure is not there yet.”—Enrique Pezera (33:39)

What Would Make COP29 a Success?

• Countries must (A) explicitly recognize methane mitigation in NDCs and (B) commit the resources to back it up, especially for the Global South. (34:24–34:56)

Notable Quotes & Memorable Moments

• “[COP is] a mobilization of intent and efforts, and it's inspiring to see how many people are gathering to work on different pieces of the work.” —Bjørn Otto Sverdrup, OGCI (13:17)
• “Things are different and hopefully that also leads to a more nuanced debate where you're looking for shared solutions.” —Bjørn Otto Sverdrup (18:00)
• “There is a lot of resistance in the financial sector to provide financing for the oil and gas industry because...they are then financing more oil and gas production. And it's a big problem, right?” —Enrique Pezera (33:34)
• “80% of methane emissions are in the Global South, which is quite different from when we talk about carbon dioxide...So there needs to be an understanding that the Global South, we have a great opportunity for methane mitigation there, but it needs the capacity, it needs the resources, it needs support.”—Enrique Pezera (34:56)

Important Timestamps

• 00:25 — Methane’s significance and global warming share
• 04:44 — Introduction of OGCI, the Decarbonization Charter, and company commitments
• 09:40 — Progress reports vs. continued rise in global emissions
• 14:39 — Carbon markets and financing needs for new technologies
• 21:09 — Global Methane Hub’s origins and focus on transparency/policy
• 24:25 — IEA findings: cost-effectiveness of methane mitigation
• 25:41 — Latin American success stories and regulatory landscape
• 29:14 — Outlook: When will emissions finally decline?
• 32:17 — Solution focus: climate finance, carbon pricing, and taxonomy
• 34:24 — What would make COP29 a methane success?

Overall Tone

Pragmatic but urgent. Both guests acknowledge hard realities—slow progress, market barriers, North–South divides, the mismatch of ambitions and resources—while offering concrete examples and guarded optimism that conditions for meaningful methane reduction are improving. Ed Crooks maintains a journalistic, challenging, yet constructive tone throughout.

Conclusion

COP29 delivered only incremental steps on climate finance and global carbon markets, leaving many Global South nations frustrated—but the technical and regulatory groundwork for deep methane cuts is starting to show results. The energy sector’s willingness to cooperate, innovate, and accept scrutiny will remain critical as the world heads to COP30 in Brazil, with the global methane emissions curve needing to bend sharply downward if 2030 targets are to be met.

For feedback or questions, listeners are encouraged to reach out via social media or the Wood Mackenzie website.