Methane emissions reporting is improving, but more action is needed to reduce emissions. (Image source: Adobe Stock)

Government and industry responses to UN Environment Programme (UNEP) satellite methane alerts rose from 1% to 12% cent in the past year, and oil and gas methane emissions reporting has improved, but action needs to accelerate to achieve the Global Methane Pledge goal of curbing methane emissions 30% by 2030, according to a new UNEP report

Atmospheric methane continues to be the second biggest driver of climate change after carbon dioxide, responsible for about one-third of the planet’s warming, and real-world data is a critical tool to track and reduce methane emissions.

The fifth edition of the UN Environment Programme’s (UNEP) International Methane Emissions Observatory (IMEO) publication, An Eye on Methane: From measurement to momentum, finds that member oil and gas companies of IMEO’s Oil and Gas Methane Partnership 2.0 (OGMP 2.0) are set to track one-third of emissions from global production using real-world measurements. The OGMP 2.0 is the world’s global standard for methane emissions measurement and mitigation in the oil and gas sector. Over the past five years, OGMP 2.0 membership has more than doubled to 153 companies in the countries, covering 42% of global oil and gas production.

One-third of global oil and gas production reports, or will soon report, emissions at OGMP 2.0’s Gold Standard – meaning emissions are tracked with real-world measurements. This positions a large amount of the global industry to effectively measure – and thus mitigate – emissions. One of the companies achieving 'Gold Standard reporting' in 2024 for having effectively achieved the highest levels of data quality is Eni. OGMP 2.0’s 2025 report recognized Eni for its continued progress, including identifying and quantifying emissions across non-operated assets, as well as training and technical assistance on the LDAR (Leak Detection and Repair) approach to fugitive emissions. LDAR training sessions were organised with the support of UNEP and delivered to National Oil Company (NOC) personnel.

The report highlights that while government and company responses to alerts from IMEO’s Methane Alert and Response System (MARS) have grown tenfold over the previous year, nearly 90% remain unanswered, necessitating an increase in response rates. Through MARS, UNEP has sent over 3,500 alerts about major emissions events across 33 countries. These alerts are based on satellite monitoring and artificial intelligence-supported analysis. IMEO has documented 25 cases of mitigation action in ten countries since MARS was launched in 2022, including across six new countries during the past year.

“Reducing methane emissions can quickly bend the curve on global warming, buying more time for long-term decarbonisation efforts, so it is encouraging that data-driven tools are helping the oil and gas industry to report on their emissions and set ambitious mitigation targets,” said Inger Andersen, executive director of UNEP. “But to keep the Paris Agreement targets within reach, the important progress on reporting must translate into cuts to emissions. Every company should join the Oil and Gas Methane Partnership 2.0, and both governments and operators must respond to satellite alerts – then they must act to reduce emissions.”

Geothermal development opportunities in the region range from heating and cooling applications, to power generation. (Image source: Project InnerSpace)

Project InnerSpace, an independent non-profit organisation dedicated to the global development of geothermal energy, has released GeoMap Middle East, a geothermal exploration platform that helps government, businesses and communities identify and advance geothermal opportunities

The platform integrates millions of subsurface and surface data points into a freely accessible, interactive map, and reveals vast geothermal potential in the Gulf region for cooling, long-duration energy storage, and round-the-clock power applications.

In the Middle East, geothermal can deliver the constant, low emissions energy needed to meet rising demand for cooling, with cooling driving up to 70% of peak electricity demand in the Gulf states.

Geothermal district cooling could slash that peak, easing grid strain in cities like Riyadh, Dubai, and Doha. GeoMap shows around 14,000 GW of cooling potential, with Iran, Egypt, Iraq, and Turkey providing two-thirds of capacity; Saudi Arabia, UAE, and Qatar also hold major opportunities.

Geothermal can also complement record-breaking solar investments by providing long-duration energy storage. Geological formations across Iraq, Syria, the Gulf states, northern Saudi Arabia, and Yemen could serve as "earth batteries," storing excess solar and wind energy as heat in deep sedimentary basins and releasing it on demand to balance the growth of intermittent renewables.

The region is home to high-potential geothermal zones. The Red Sea Rift (western Saudi Arabia/northern Yemen) holds potential for gigawatt-scale power production and desalination; eastern Turkey and northern Iran also have strong power potential. Both areas hold opportunities for geothermal powered data centres.
Importantly, the Middle East is uniquely positioned to scale geothermal quickly, given the region's extensive drilling expertise and robust oil and gas industry presence, providing the know-how, workforce, and assets needed for rapid deployment.

"One of the most exciting things about the geothermal development potential in the Gulf region is the fact that the resource sits below some of the world's most capable and resourced oil and gas companies - the very entities with the required expertise to develop these resources, and the ability to deliver the speed and scale necessary to make geothermal relevant for the world," said Jamie Beard, executive director of Project InnerSpace.

GeoMap Middle East builds on previous releases of GeoMap in Africa, North America, India, Asia, and Oceania, advancing a global effort to map geothermal opportunities and make next-generation geothermal data freely accessible.

Fadi Al-Shihabi, sustainability solutions lead, KPMG Middle East. (Image source: KPMG)

Fadi Al-Shihabi, sustainability solutions lead, KPMG Middle East, discusses how decarbonisation is transforming the lubricant oil industry and accelerating the Middle East’s journey to net zero

The lubricant (lube) oil sector is under growing pressure to minimise its environmental footprint as industries worldwide confront the realities of climate change. A rapidly growing industry in the UAE, it is currently estimated at 166.27mn litres, and is expected to reach a staggering 202.68mn litres by 2030. In the Middle East, where the current lubricant market is estimated at 2.94 billion litres and expected to reach 3.31bn litres by 2030, similar trends are evident in Saudi Arabia, Oman, and Qatar.

From the automotive industry to power generation, the lubricant oil sector is a widely growing area. It plays a critical role in keeping engines, machinery, and industrial systems operating efficiently, but its traditional production, packaging, and end-of-life management contribute significantly to greenhouse gas (GHG) emissions.

According to the International Energy Agency (IEA), oil and gas operations, including extraction, processing, and refining, account for approximately 5.1 Gt CO2e annually, or about 15% of global energy sector emissions. To remain on track for net-zero by 2050, these emissions must fall by over 60% by 2030.

The UAE has set itself enormous emissions targets – the UAE Net Zero by 2050 strategic initiative aims to achieve net-zero emissions by 2050 – with stakeholders in key sectors, including energy, implementing projects to decarbonise in line with their needs and growth requirements. Saudi Arabia’s Circular Carbon Economy framework and Oman’s Net Zero 2050 pledge echo similar decarbonisation ambitions.

The deployment and use of clean energy solutions is one of the UAE’s main pillars to address climate change and reduce GHG emissions. The country began financing clean energy projects more than 15 years ago and has invested over US$40bn in the sector to date. The Middle East region as a whole is set to receive over US$75bn in investments for renewable energy projects by 2030, according to a report released by the Energy Industries Council (EIC). Ahead of the COP28 summit in the UAE in 2023, more than 60 top executives from the oil and gas, cement, aluminium and other heavy industries agreed to cut their emissions to meet their climate obligations.

Within the lubricants sector, electrifying process heat, cutting methane leaks, and using low-emissions hydrogen, particularly in energy-intensive refining steps like hydrotreating and hydroisomerisation, are vital for efficiency improvements. These innovations are critical as it is estimated that a single liter of lubricant can generate over 3.5 kg CO₂e. Refineries across the GCC are piloting hydrogen and CCUS technologies to curb emissions in lubricant production.

Innovation powering the lubricants industry

The journey of lube oil begins with crude oil extraction, followed by vacuum distillation to separate heavier fractions suitable for base oil production. These base oils undergo further refining processes such as hydrotreating, hydroisomerisation, dewaxing and other processes, enhancing their viscosity, stability, and longevity.

Recent innovations in catalyst technology and feedstock selection are driving both product quality improvements and emissions reduction. Producers are also blending biomass-derived feedstocks with conventional inputs to create lower-carbon base oils. These bio-based oils perform similarly to fossil-based ones but have less carbon footprint and can be processed using existing infrastructure. Scientists are also exploring entirely renewable base oils.

However, innovation doesn’t stop at production. Digital monitoring tools help reduce lubricant waste during use. For example, Finnish company Lassila & Tikanoja installed real-time oil monitoring across its hydraulic systems and reduced oil use by 13,400 litres over four years, saving around 10 tonnes of CO₂e annually. They also cut lubricant-related emissions by up to 80% through smarter maintenance without affecting performance.

Packaging and handling

When it comes to packaging, manufacturers are increasingly optimising designs by reducing material use and enhancing handling and distribution. While traditional rigid plastics and metals have historically provided the necessary protection, they also present significant challenges in terms of disposal and GHG emissions.

Consequently, the lubricant industry is undergoing a transition toward low-carbon packaging alternatives that can maintain safety and performance while addressing environmental concerns. Lightweighting and design optimisation reduce raw material demand, shipping weight, and CO2 emissions per litre delivered, without compromising safety or performance.

TotalEnergies has been at the forefront with the integration of 50% post-consumer recycled (PCR) HDPE in its premium lube oil bottles, launched in France and Belgium since September 2023. These bottles retain the same weight, design, and performance while significantly reducing the carbon footprint.

Lowering cradle-to-grave emissions

Beyond production and packaging, extending lubricant life is key to decarbonisation. Modern additives have enabled lubricant change intervals to increase from 5,000 km in legacy vehicles to upwards of 30,000 km in modern engines.

Bio-based or biomass-balanced additives further support environmental goals by reducing the emissions linked to additive manufacture and enhancing overall oil performance. The result is less frequent oil manufacture, transport, and disposal.

As the UAE accelerates its journey towards decarbonisation, these steps will be crucial in ensuring the responsible end-of-life management of lube oils. Technological advancements and environmentally friendly formulations will create new growth avenues and set a new benchmark in the UAE’s industrial revolution. As neighbouring countries pursue similar ambitions, regional collaboration in innovation and policy will be key to transforming the Middle East lubricant landscape.

Shipping is seen as one of the most promising opportunities for low-carbon ammonia and methanol. (Image source: Adobe Stock)

While ammonia and methanol are gaining traction as low-carbon fuels and hydrogen carriers to support the global energy transition, large-scale adoption is slow due to uncertain demand, says data and analytics company GlobalData

Demand for low-carbon ammonia and methanol is being driven by industries such as shipping, power generation, fertilizers, and chemicals, given their potential to decarbonise existing operations. GlobalData’s Strategic Intelligence report, “Ammonia and Methanol in Energy Transition,” reveals that countries such as Japan, South Korea, China, and members of the European Union are backing low-carbon projects, while companies including Yara, Maersk, CF, and Mitsubishi are exploring large-scale investments to boost their production.

Low-carbon ammonia capacity is estimated to grow to nearly 250 million tonnes per annum (mtpa) by 2030, with more than 460 upcoming plants globally. Low-carbon methanol is also projected to grow, with plant numbers approaching 150 by 2030. However, many projects are in early stages of development, with some hydrogen-linked initiatives already seeing delays or cancellations.

The report also highlights that low-carbon ammonia and methanol are closely linked to the scaling of hydrogen, acting as carriers for transport and storage. However, growth depends on stronger infrastructure commitments, technology advancements, and regulatory requirements. Shipping is seen as the most promising immediate opportunity, but significant investment and regulatory clarity are required to move beyond pilots.

Ravindra Puranik, Oil and Gas analyst at GlobalData, commented, “Low-carbon ammonia and methanol could complement the energy transition by acting as fuels and hydrogen carriers, but their role is far from guaranteed. Cost competitiveness, safety standards, and infrastructure development will be critical. Without supportive regulation and faster project execution, many of the current net-zero ambitions may not translate into reality.

“Low-carbon ammonia and methanol initiatives had a promising start earlier this decade. However, the pace of development is already slowing, with some high-profile hydrogen projects seeing cancellations or postponement. Combined with high production costs and technical challenges in handling, this raises doubts about whether low-carbon ammonia and methanol can achieve the scale once envisioned. These challenges underline the gap between announced capacity and what will realistically materialise by 2030.”