National oil companies & global finance: Unlocking opportunities to reduce methane emissions
National oil companies & global finance
Unlocking opportunities to reduce methane emissions
Reaching global methane goals requires national oil companies to slash methane emissions. The finance sector can unlock progress.
Introduction
In 2023, national oil companies (NOCs) made historic commitments to reduce methane emissions, signaling a critical step toward achieving global 2030 climate goals. This report seeks to understand the significance of NOCs, what drives their priorities and decision making, and how the finance sector can unlock the capital needed to help NOCs accelerate methane mitigation efforts, enabling the industry to accelerate near-term methane mitigation.
Authors
TJ Conway, Principal, Oil & Gas Climate Solutions, RMI
Andrew Baxter, Senior Director, Energy Transition, Environmental Defense Fund
Report highlights
- NOCs are key to methane reduction: Representing half of global oil and gas production, NOCs must lead methane mitigation to achieve net-zero targets.
- NOCs are committing to climate action: Several NOCs, like Petronas and Ecopetrol, have set net-zero targets, responding to climate pressures and government priorities.
- Market and policy pressures are rising: Drivers such as EU methane laws and global LNG buyer preferences are incentivizing NOC methane management.
- Investors can drive climate action: Equity investors, asset managers, and insurers have significant influence on NOCs’ methane mitigation and decarbonization efforts.
- NOCs’ financial engagement creates opportunities: With many NOCs publicly traded and deeply involved in global capital markets, investors can influence their climate actions.
Global O&G production share (2023)

Global O&G resources (2023)

Analysis of major NOCs reveals financial engagement opportunities
- Methane reduction-linked debt is a key opportunity. NOCs rely on debt markets, and linking methane performance to debt terms offers a scalable mitigation solution.
- Equity investors can shape climate priorities. Even with majority government shares, private investors can influence NOCs to address methane.
- Financing by multi-lateral development banks can catalyze action. Institutions like the World Bank can support NOCs in launching methane mitigation projects, especially with technical aid.
- Joint venture partners and energy-importing countries have leverage. Oil and gas producer partnerships can lead to improved methane management.
- Leading NOCs can drive global change. Well-capitalized NOCs like Petronas and ADNOC can support lower-capacity NOCs with funding and technical support.
- Measurement, monitoring, reporting and verification practices are essential for progress. Reliable MMRV practices are key to holding companies accountable and ensuring results.
Production, market float and debt of selected National Oil Companies (2023)

Additional Resources

Blog
Activating National Oil Companies for Climate Progress
Cutting methane emissions from the oil and gas sector, especially NOCs, is the most cost-effective way to slow the rate of global warming today.
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Report
Collaborative levers for methane abatement in national oil companies
National oil companies dominate industry methane emissions; enlisting them to clean up requires understanding the governments that manage them.
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Presentation
MethaneSAT: What You Need to Know
For the finance sector, MethaneSAT satellite data will enable a step change in oil & gas risk and performance evaluation.
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Report
Plugging the Leaks: An Investor Guide to Oil and Gas Methane Risk
Oil and gas companies must curb methane emissions to limit warming this decade, and address urgent risks.
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