Cairn Oil & Gas, a leading upstream oil company in India and a subsidiary of the Vedanta Group, has taken a significant step in environmental sustainability by becoming the first Indian oil producer to commit to the United Nations’ methane reduction pledge. This move aligns with the company’s ambitious goal to achieve Net Zero Carbon emissions by the year 2030.
On Monday, Cairn signed a Memorandum of Understanding (MoU) with the United Nations Environment Programme’s (UNEP) flagship initiative aimed at reducing methane emissions in the oil and gas sector, known as the Oil & Gas Methane Partnership (OGMP) 2.0.
The OGMP 2.0 initiative has established a comprehensive framework designed to guide oil and gas companies in managing emissions effectively. This includes best practices for emissions management, alongside a robust reporting system that emphasizes accurate measurement, reporting, and verification (MRV) of methane emissions.
Under the terms of the MoU, Cairn will set a five-year methane reduction target and report its progress transparently to the OGMP. This initiative will allow Cairn to analyze its emission profiles thoroughly, utilizing the data to implement cost-effective measures for reducing emissions.
A Broader Commitment To Climate Goals
The OGMP 2.0 initiative currently covers over 40 percent of global oil and gas production. Giulia Ferrini, the Programme Manager for OGMP 2.0, expressed enthusiasm about Cairn’s involvement, stating, “We are thrilled to welcome our first member from India and hope that Cairn’s commitment will inspire other companies from the country to join OGMP 2.0 and contribute to improving methane emissions reporting and management practices in the oil and gas sector.”
Cairn’s participation effectively doubles the coverage of OGMP 2.0 in India, now representing approximately one-fourth of the nation’s domestic oil and gas production. The framework provides companies with a credible, science-backed approach to demonstrating their progress towards methane reduction targets, supporting international commitments such as the Paris Agreement and the Global Methane Pledge. This pledge, which involves over 150 countries, aims for a 30 percent reduction in global methane emissions by 2030.
Comprehensive Environmental Strategy
Hitesh Vaid, the Chief Financial Officer of Cairn Oil & Gas, articulated the company’s multifaceted approach to environmental, social, and governance (ESG) strategies. He stated, “Our multi-faceted environmental, social, and governance (ESG) strategy—spanning renewable energy integration, carbon capture utilization and storage (CCUS), waste-to-energy projects adopting low-carbon technologies, and extensive nature-based carbon solutions—highlights the extent of our dedication to both the environment and India’s energy security.”
Earlier this year, Cairn accelerated its net-zero commitments to 2030 and has successfully reduced its potential gas flaring volume by 60 percent over the past four years. This achievement reflects the company’s proactive stance in mitigating environmental impacts and underscores its commitment to sustainable practices in the oil and gas sector.
In summary, Cairn Oil & Gas’s entry into the UN’s methane reduction initiative marks a pivotal moment in India’s oil production landscape, emphasizing the importance of sustainable practices in combating climate change while bolstering the nation’s energy security. This commitment not only sets a precedent for other Indian companies but also contributes to global efforts aimed at reducing greenhouse gas emissions.
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