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Monday, October 14, 2024

Measurement, Monitoring, Reporting, and Verification (MMRV) Framework for Greenhouse Gas Emissions Along the Natural Gas Supply Chain


     Measurement, Monitoring, Reporting, and Verification (MMRV) has become the means of evaluating methane, CO2 (and VOC) emissions reduction efforts for the oil & gas sector. It covers emissions from the production, processing, transmission, liquefaction, transport, and distribution of natural gas. The DOE’s Fossil Energy and Carbon Management Office recently announced that an international framework for MMRV has been agreed upon. According to DOE:

 

Potential elements of the MMRV Framework include:

·       Common Criteria: Criteria to ensure rigor of quantification and reporting of GHG emissions and a process for independent certification or verification of emission estimates and adherence to criteria.

·       Data Transparency and Tools: Expectations for collecting and reporting data consistent with the needs of natural gas market participants and a transparent and consistent life cycle analysis tool for calculating and reporting supply chain data quality and GHG emission intensity.

·       Accreditation Process: A process to confirm certifiers are employing consistent protocols, as identified through the framework, including a mechanism for independent oversight of the accreditation process.

The MMRV Framework is not a regulatory process and countries and regions participating in its development are not committing to use of it in a regulatory process. The MMRV Framework is intended to improve the accuracy, completeness, and transparency of reported emissions in the marketplace and drive emission reductions across the natural gas supply chain.



     The MMRV framework addresses the expectations of purchasers, regulators, or other stakeholders regarding the greenhouse gas intensity of delivered or contracted gas. Buyers in Europe are probably the most interested in MMRV. Producers in North America and the North Sea are probably the best situated currently to deliver MMRV-certified natural gas. DOE lists the countries involved in the framework:

Australia, Brazil, Canada, Colombia, Egypt, the European Commission, France, Germany, India, Italy, Japan, Korea, Malaysia, Mozambique, Norway, the United Arab Emirates, the United Kingdom and the United States have representatives who participate in the Working Group as participants or observers along with the Eastern Mediterranean Gas Forum

     The framework is expected to become a “voluntary market-driven approach that will incentivize industry to reduce emissions beyond regulatory compliance.” Most current certification schemes of emissions-reduced natural gas are at the county level or the corporate level. The new framework integrates those efforts and simply aims to standardize MMRV at the international level. An international Working Group was established in May 2023 and the recent announcement of an agreement is the culmination of the efforts of that MMRV Working Group. The Group is expected to develop “products such as guidance, tools, and protocols for voluntary use in natural gas markets.”

     The framework will allow buyers to compare emissions reduction claims from different suppliers. The goal is to quantify and aggregate emissions across the supply chain and assess data quality that ensures comparability and reliability. There will be expectations for rigorous independent third-party reviews. Thus far, the Working Group has developed a consensus on the MMRV design architecture and established multiple technical subgroups. The framework is expected to be implemented and functional in 2025. According to the DOE, the ongoing work of the MMRV Working Group includes the following:

Leveraging internationally recognized principles for assessing the quality of data used to quantify the greenhouse gas intensity of natural gas delivered to buyers

 Building upon existing technical protocols for measuring and estimating methane and carbon dioxide emissions to establish a performance-based data quality approach that ensures comparability and values accuracy through consistent verification requirements

 Assessing international approaches to provide reliability and confidence in measures of supply chain GHG intensity using accredited independent third-party verification bodies

 Defining requirements and expectations for long-term management of the MMRV Framework to enable trust and confidence in the marketplace

 Seeking and incorporating technical input from industry, academia, non-governmental organizations, and other stakeholders to guide the development process and ensure future market acceptance of the MMRV framework once implemented.

 

 

References:

 

International MMRV Working Group Reaches Milestone in Developing a Credible Framework for Measuring Natural Gas Supply Chain Emissions to Drive Continuous Reductions in Methane and Carbon Dioxide Emissions in the Global Natural Gas Market. U.S. DOE. Fossil Energy and Carbon Management. October 3, 2024. International MMRV Working Group Reaches Milestone in Developing a Credible Framework for Measuring Natural Gas Supply Chain Emissions to Drive Continuous Reductions in Methane and Carbon Dioxide Emissions in the Global Natural Gas Market | Department of Energy

Greenhouse Gas Supply Chain Emissions Measurement, Monitoring, Reporting, Verification Framework. Office of Fossil Energy and Carbon Management. Last updated March 15, 2024. Greenhouse Gas Supply Chain Emissions Measurement, Monitoring, Reporting, Verification Framework | Department of Energy

Greenhouse Gas Supply Chain Emissions Measurement, Monitoring, Reporting and Verification (MMRV) Framework. Office of Resource Sustainability. November 15, 2023. MMRVFramework_FAQ_15Nov2023.pdf (energy.gov)

DOE Announces Global Collaboration to Reduce Methane Emissions. U.S. DOE Fossil Energy and Carbon Management. November 15, 2023. DOE Announces Global Collaboration to Reduce Methane Emissions | Department of Energy

Greenhouse Gas Supply Chain Emissions Measurement, Monitoring, Reporting and Verification (MMRV) Framework: Frequently Asked Questions. November 15, 2023. MMRVFramework_FAQ_15Nov2023.pdf (energy.gov)

                                                                                                                                                        

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