Executive summary 5

Introduction 9

Chapter 1. Harnessing market forces to reduce global methane emissions 12

 Methane emissions from oil and gas activity remain stubbornly high worldwide 12

 In major importing economies, imported emissions often far exceed domestic ones 14

 A marketplace for near-zero fuels can benefit producers, buyers and governments alike 16

 Demand for near-zero fuels could reduce global upstream emissions by up to 35% 18

 Key elements of a global voluntary marketplace 20

 IEA’s proposed framework for the near-zero intensity methane marketplace 26

Chapter 2. Defining a methane intensity metric 29

 The need for a common intensity formula 29

 Setting the boundaries 31

 Determining the appropriate intensity formula 40

 Defining a “near-zero” upstream methane intensity 49

 Using a grading system to demonstrate progress towards “near-zero” methane intensity 52

Chapter 3. Measuring data quality 56

 Approaches to quantifying methane emissions 56

 Designing a data-quality score for methane emissions quantification 59

 Enhancing trust through independent third-party verification 66

 Supporting comparability through standardised disclosure criteria 71

Chapter 4. Policy options that could support a voluntary marketplace 76

 How can governments support market development? 77

 Policy options 78

 International collaboration 85

Chapter 5. Proposed next steps for establishing and advancing the NZIMM 87

Acknowledgments 89

Annexes 90

 Annex 1 – Structure and aims of proposed Technical Working Group 90

 Annex 2 – Understanding oil and gas markets 93