Voluntary standards for natural gas: Key differentiators & questions to consider

Published By Updated 7 min read

Choosing a voluntary natural gas standard involves more than comparing emissions requirements. Programs differ in how they measure and assess performance, whether they offer certification, and which environmental claims their results can support.

For operators, these differences affect the data they need to collect, the evidence they must provide, and how they can demonstrate performance to buyers.

Watch the discussion

In this discussion, Dr. Erin Tullos and Rob Campbell-Watt of GHD compare how operators evaluate voluntary natural gas standards.

 

“I often hear from companies that are thinking about how to engage in the space, the more they learn, the more confused they are about the options and the differences. I really empathize with the feeling that there’s a swirl of things we could do, but not really sure what we should do.”
— Dr. Erin Tullos

Not all voluntary natural gas initiatives serve the same purpose

The terms “certified gas” and “responsibly sourced gas” are sometimes used interchangeably, but they do not necessarily mean the same thing. Responsibly sourced gas is a broader market description. Certification means defined program requirements have been met.

For example, the Oil and Gas Methane Partnership 2.0 (OGMP 2.0) provides a measurement-based methane reporting framework intended to improve emissions data quality and support mitigation. MiQ provides a standard for independently assessing natural gas methane emissions performance and supports certificates through a registry. Equitable Origin’s EO100 Standard for Responsible Energy Development takes a broader approach, evaluating environmental, social, and governance practices associated with energy development.

These initiatives are not necessarily alternatives to one another. An operator may participate in a reporting framework while also pursuing certification under a separate standard.

Key differentiators between voluntary standards for natural gas

Programs differ in what they require, how performance is assessed, and what the results can demonstrate.

1. Methane focus

Some standards focus on methane emissions, while others cover broader greenhouse gas emissions or environmental and social practices. For a methane performance claim, the program has to define which emissions sources are included, which reporting boundary applies, and how methane intensity is calculated. Two programs can report different intensity values for the same methane emissions if they use different production denominators.

2. Certificates and tradable instruments

Certification of operational performance and a transferable certificate are not the same thing. A program may assess performance, issue certificates, or do both.

Certificate programs set the volumes and reporting periods a certificate covers, the environmental attributes it represents, and the rules for issuance, ownership, transfer, and retirement. A certificate can provide evidence of specified environmental attributes without establishing that the gas delivered to a buyer came only from certified facilities. Retirement does not, by itself, substantiate every environmental claim a buyer might make.

Under MiQ, a facility’s methane performance grade and a retired certificate serve different purposes. The grade is the assessed methane performance for the certification period, and the retired certificate represents the environmental attributes for an eligible quantity of natural gas.

Not every voluntary initiative issues certificates. Some focus on emissions reporting or an independent performance assessment and do not create a transferable instrument.

3. Measurement and MRV expectations

Voluntary standards measure, report, and verify emissions in different ways. Some rely on emissions factors and engineering estimates. Others incorporate direct measurements or monitoring data.

A “measurement-based” label is not enough on its own. Programs can differ in which sources require direct measurement and where measurement-informed quantification is allowed. Measurement-informed quantification uses measurements to inform a source-level or site-level estimate. Other sources may still be estimated with an engineering calculation or an emissions factor.

A measurement at one point in time may not represent emissions across the reporting period, especially when operating conditions change. Whether an estimate is required between measurements depends on the program.

The team should be able to show the method used for each source and the assumptions behind the reported emissions. The OGMP 2.0 guide goes further on measurement levels and data quality for operators using that framework.

4. Independent assessment

An independent assessment evaluates reported information or operational practices against the program’s requirements. Depending on the program, the assessor may review emissions calculations, measurement records, operating practices, and supporting documentation.

The conclusion covers the facilities, activities, and reporting periods that were reviewed. Some assessments examine procedures or reported information. Others support a grade or a conformity decision, and the program defines which of those the assessment produces. Either result can increase confidence in the reported information. Neither removes uncertainty from the underlying emissions estimates.

Certification confirms conformity with the program’s requirements. Where a program issues transferable certificates, the registry separately records issuance, ownership, transfer, and retirement.

5. Mitigation versus performance demonstration

Some initiatives focus on assessing and reporting emissions performance. Others emphasize emissions reductions and tracking progress over time.

Certification can confirm conformity with a program’s requirements for a reporting period, but it does not necessarily mean emissions have decreased. Demonstrating a reduction requires emissions data that can be compared across periods, with changes in calculation methods, operating conditions, and reporting boundaries accounted for. A lower reported total can reflect how the emissions were calculated, rather than a decrease in emissions.

Methane intensity can decrease even when total methane emissions remain unchanged, if the production denominator increases. A lower intensity and a reduction in absolute methane emissions are different claims.

The right initiative depends on the need: a credible baseline, evidence of a reduction, a buyer’s requirements, or an ongoing methane reduction program.

6. Geographic and operational scope

A standard’s geographic and operational scope affects which assets it can cover. Requirements written for upstream production may not address the emissions sources or operating conditions at gathering and processing facilities.

A program may apply differently across jurisdictions, even when the operations are similar. For a company with assets in more than one region, that can change which facilities are eligible and whether the results can be compared or combined.

Questions to ask when choosing a voluntary natural gas standard

A few questions narrow the field:

  • What claim do I need to support, and for which buyers or stakeholders?
  • Do I need independently assessed emissions data, certification, or transferable certificates?
  • Which assets, volumes, and reporting periods are in scope?
  • Does the program apply to every region and operation I need to include?
  • What documentation do we already have, and what additional evidence would the program require?

A standard may meet an operator’s reporting or certification objectives without satisfying every buyer’s requirements. Buyers may recognize different programs, expect different evidence of performance, or have difficulty comparing results when reporting boundaries and calculation methods differ.

The information needed for certification or an independent assessment can also be spread across field records, measurement reports, engineering calculations, and spreadsheets. Bringing those records together can reveal missing documentation, inconsistent reporting boundaries, or differences in calculation methods that need to be addressed before an assessment.

“Once those main drivers have been thought through, selecting a standard reporting framework or a certificate becomes an easier task.”
— Dr. Erin Tullos

Frequently asked questions

What is the difference between a voluntary reporting framework and natural gas certification?

A voluntary reporting framework sets expectations for how emissions are quantified, reviewed, and disclosed, often without creating a marketable product claim. Natural gas certification applies a defined standard to production or practices and may support a certified or differentiated product claim, sometimes with certificates. Operators may use both. For initiative-level diligence questions, see five questions on certified gas.

Do all voluntary natural gas standards issue certificates?

No. Some programs issue certificates or other tradable instruments. Others verify performance or practices without creating a transferable certificate. Where a transferable certificate is part of the claim, the program’s rules for issuance, ownership, transfer, and retirement have to be clear.

How do I choose a voluntary natural gas standard?

The right standard depends on the claim the operator needs to support, the buyers’ requirements, and the facilities being assessed. The material differences are emissions scope, measurement methods, independent assessment, certificate provisions, and operational coverage.

For operators pursuing certification, reviewing the program’s requirements early shows the measurements, documentation, and supporting evidence they will need. For preparing a differentiated product once a pathway is chosen, see five steps to ESG certification.

Where Validere fits

Selecting a voluntary standard is only part of the work. Operators participating in multiple initiatives may need to use the same underlying emissions data for different calculation methods, reporting boundaries, and documentation requirements.

Validere helps operators connect emissions and operational data, manage the calculations each standard requires, and maintain the supporting records used for reporting and independent review.

See how Validere supports voluntary emissions reporting.

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