Prospects for NaturalGas Certification INTERNATIONAL ENERGYAGENCY The IEA examines the fullspectrumof energy issuesincluding oil, gas andcoal supply anddemand, renewableenergy technologies,electricity markets,energy efficiency,access to energy,demand sidemanagement and muchmore. Through its work,the IEA advocatespolicies that will enhancethe reliability,affordability andsustainability of energyin its32Member countries,13Association countriesand beyond. IEAAssociationcountries: IEAMembercountries: AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLatviaLithuaniaLuxembourgMexicoNetherlandsNew ZealandNorwayPolandPortugalSlovak RepublicSpainSwedenSwitzerlandRepublic of TürkiyeUnited KingdomUnited States ArgentinaBrazilChinaEgyptIndiaIndonesiaKenyaMoroccoSenegalSingaporeSouth AfricaThailandUkraine This publication and any mapincluded herein are withoutprejudice to the status of orsovereignty over any territory,to the delimitation ofinternational frontiers andboundaries and to the nameof any territory, city or area. The EuropeanCommission alsoparticipates in thework of the IEA Source: IEA.International Energy AgencyWebsite: www.iea.org Acknowledgements This report was prepared by the IEA’s Gas, Coal and Power Markets Division(GCP) and Office of the Legal Counsel (OLC), in collaboration with the Office ofthe Chief Energy Economist. The report’s principal authors are Carole Etienne,Félix Gagnon and Chiara Hampton. Other IEA colleagues who provided valuableinputs include Ana Alcalde Bascones, Tomás de Oliveira Bredariol, SadhikaGulati, Dennis Hesseling, Christophe McGlade, K.C. Michaels, David Niedzwickiand Natalie StClair. This report could not have been achieved without the financial support of, andinput from, Canada’s Department of Natural Resources. The report was preparedin support of Canada’s G7 presidency. Valuable comments and feedback were received from the following externalexperts (in alphabetical order): Natural Resources CanadaClean Air Task ForceEQTSwiss Federal Office of EnergyIndependent ConsultantClean Air Task ForceRBCNatural Resources CanadaMiQChevronNatural Resources CanadaNatural Resources CanadaEquitable OriginMiQNatural Resources CanadaEquitable OriginEquitable OriginMiQExpand EnergyNatural Resources Canada Thanks are also due the IEA’s Communications and Digital Office (CDO) for theirhelpin producing the report,particularly Jethro Mullen,Curtis Brainard,Astrid Dumond,Liv Gaunt,Julia Horowitz,Oliver Joy,Poeli Bojorquez,Wonjik Yang, Isabelle Nonain-Semelin, Clara Vallois and Grace Gordon. Thereport was copyedited by Elspeth Thomson. Table of contents Natural gas operations result in around 5% of global energy-related greenhouse gasemissions .....................................................................................................................8Methane emissions account for most of the natural gas sector’s greenhouse gasemissions .....................................................................................................................9Theemissions intensity of natural gas varies significantly between and withincountries ....................................................................................................................12Defining certified natural gas .....................................................................................13Potential benefits of certified natural gas for companies and countries ..................... 13 Overview of voluntary initiatives in the natural gas sector ......................................... 17Certification schemes.................................................................................................17Corporate reporting initiatives ....................................................................................21Supply chain protocols...............................................................................................23Volume of certified natural gas globally and across regions...................................... 25 3.Limitations of current natural gas certification..............................................................28 Inconsistencies in robustness, integrity and transparency......................................... 28Measurement-based information is encouraged but not universally required ........... 29Fragmented landscape of voluntary initiatives, hindering comparability .................... 30Partial coverage of GHG emissions along the natural gas supply chain ................... 30Uneven adoption across countries and companies ................................................... 31 Collaborate internationally to harmonise voluntary initiatives along the full supplychain ..........................................................................................................................33Establish minimum standards for certification to ensure credibility and robustness .. 34Integrate certific