Government of Norway

Flaring of gas in association with crude oil production represents a significant waste of resources. It is increasingly recognised as an environmental problem, contributing more than 1% to global emissions of CO2 and, in some cases having, near the flaring sites, harmful effects on human health and eco-systems.

This World Bank Group led Initiative, in collaboration with the Government of Norway, aims to support the petroleum industry and national governments in their efforts to reduce flaring (and venting) of gas;

To find sustainable demonstration projects to reduce above mentioned effects of gas flaring, and thereby help develop mechanisms for the utilisation of gas that would otherwise be flared;

To improve the political and regulatory framework for investments in flaring reductions;

To improve market access for gas; and

To disseminate information on international "best practices."

Specific targets ot the Global Initiative are to supplement and strengthen current efforts by mobilising the petroleum industry, national governments, and bilateral and multilateral development agencies in joint actions;

To establish an arena for dialogue on flaring reductions, the emphasis being on identifying areas where common approaches and collective action can offer further impetus to efforts already underway; and

To identify and find ways to overcome barriers that currently inhibit flaring reduction investments. As the causes and barriers are known, the challenge is to find practicable solutions that will generate investments.

The initiative will implement its objectives through international consultation with key stakeholders;

Knowledge improvement and dissemination;

Development and Dissemination of International Best Practices;

Maximizing the Poverty Reduction Impact of gas utilization;

Incorporation of flaring management into petroleum sector governance;

Introduction of improved contractual and regulatory frameworks dealing with flaring;

Design of financing mechanisms to reduce flaring by monetising global externalities in projects;

Identification of pilot projects for flaring reduction; and

Conferences to provide a framework for international discussion and concrete agreements on flaring reduction.

The Global Initiative is currently in consultation with governments of natural gas flaring countries and major oil companies, with the intention of bringing in new government and industry partners.

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