What is differentiated gas?

Also referred to as certified gas, producer-certified gas, responsibly-sourced gas, or low-methane gas, differentiated gas is a product that is distinguished from others on the basis of emissions intensity, making it more attractive in an emissions-trading market.

Why does methane matter?

While carbon dioxide (CO2) emissions make up a greater mass of anthropogenic greenhouse gas emissions, methane is a more impactful greenhouse gas that, if mitigated, could curb the effects of climate change much faster. Methane emissions are more potent than CO2 emissions, with over 80 times more radiative forcing per ton in a 20-year period. In economic contexts, greenhouse gases are measured by their social costs. Methane has a social cost of $1500 per metric ton and CO2 has a social cost of $51 per metric ton. Oil and gas operations are responsible for one-third of global methane emissions. During the process of producing, processing, transmitting, and distributing natural gas, methane is emitted in normal operation and by accident. Routine flaring, venting, and fugitive leaks are the main causes of methane emissions in the industry.

Why are certifiers important?

Certifiers can verify to others that your differentiated product is truly differentiated. This verification is vital in a voluntary market, where bad actors may claim fraudulent climate accounting data.  Certifiers signal trust and legitimacy in a burgeoning market with little oversight. Certifiers and standards bodies like Project Canary, Equitable Origin, and MiQ push beyond the lowest standards for methane emissions set by regulators and allow companies to demonstrate mitigating efforts that go above and beyond local, national, and international requirements.

How can distributed ledger technology help?

Distributed ledger technology (DLT) can bring trust and transparency to the voluntary marketplace by creating an accurate and immutable record of third-party certification and emissions data. The data are permanently recorded to a private blockchain where stakeholders have insight into both provenance and quality. Environmental attributes recorded onto a distributed ledger greatly enhances transactability and transferability. EarnDLT’s distributed ledger technology improves the process of bringing trust to the differentiated natural gas market.

Who makes up the DGCC?

DGCC members include academics; downstream, midstream, and upstream energy producers; gas customers; and technology companies. The coalition is managed and organized by CO2EFFICIENT, an energy and environmental strategic consultancy based in Washington D.C.

What are our policy goals?

The DGCC aims to scale the voluntary differentiated gas market in which participants can trade methane emission credits and sell lower-emissions products. To do so, the DGCC aims to ensure harmonization among federal agencies and regulators’ methane rules, maintain a standard of measurement-based technology neutrality in federal and state rules, create interoperability and neutrality among certifiers, and eliminate all other barriers to a voluntary market.

How can I stay educated?

To keep in touch with the Differentiated Gas Coordinating Council’s activity, accomplishments, and opportunities, become an observer. While regular meetings are closed to non-members, we hold quarterly Observer Updates for anyone looking to learn about our group. Please see the home page to sign up to be an observer. To learn more about differentiated gas, you can visit the resources tab, with a full glossary of industry terms, news articles, reports, and other resources.

How can I become a member?

To inquire about membership, please contact info@DGCCouncil.com.