IPIECA, the global oil and gas association for advancing environmental and social performance across the energy transition, has released a guidance document focused on the circular economy in the oil and gas industry. The guidance presents the first oil-and-gas-specific set of circularity indicators, bringing together elements from several existing circular economy frameworks and providing qualitative and quantitative circular economy indicators to enable oil and gas companies to measure the circularity of their assets and material in/out flows.
Through aligning the industry’s understanding of the circular economy and providing a general approach to measuring circularity, the guidance ensures adherence to environmental standards, encourages innovation, and fosters collaboration.
IPIECA defines a circular economy as “a system solution framework that entails decoupling economic activity from the consumption of finite resources. It is based on three principles driven by eco-design: (1) eliminate waste and pollution, (2) circulate products and materials (at their highest value), and (3) increase efficiency.”
Increasing the circularity of production processes and products can support oil and gas companies to produce energy, while reducing the effects on natural resources and biodiversity and cutting emissions.
As well as providing climate, environmental, and social benefits, a circular economy helps builds long-term resilience and generates business and economic opportunities.
IPIECA’s guidance has five sections:
- Section 1: About the circular economy and the industry’s role in it
- Section 2: Circular economy frameworks and their applications
- Section 3: Key circular economy indicators
- Section 4: Measuring circularity
- Section 5: Conclusions
This report aims to help oil and gas industry circular economy subject-matter experts, waste professionals, and corporate sustainability units to:
Improve understanding of the various circular economy frameworks available
- Develop a circular economy strategy
- Improve their companies’ circular economy performance
- Measure, assess, report and steer on circularity