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In brief

On 1 December 2023, the Energy Secretariat, through Resolution 970/23 (“Resolution“), created the National Program for the Measurement and Reduction of Emissions from Hydrocarbon Exploration and Production Activities (“Program“).

Hydrocarbon-producing companies must submit: (i) an annual plan for the measurement of emissions (“Annual Plan“); and (ii) a comprehensive five-year plan for the reduction and/or capture of emissions (“Comprehensive Plan” and with the Annual Plan, “Plans“) before the Hydrocarbons Sub-Secretariat, which will be in charge of issuing further complementary regulations.


In depth

The Resolution aims to (i) promote actions to identify and compute emissions associated with hydrocarbon-producing activities (i.e., exploration and production activities), (ii) systematize the information; and (iii) promote mitigation and reduction plans.

These emissions include, according to the latest National GHG Inventory of Argentina of 2019, all intentional and unintentional emissions from the extraction, processing, storage and transportation of fuels until their final use. For reference, said Inventory indicates that emissions (10.52 MtCO2) represented 2.9% of Argentina’s total greenhouse gas emissions and 6% in the energy sector.

Below is a brief detail of the main points of the Resolution:

  1. Parties subject to the Resolution. The Plans must be submitted by hydrocarbon-producing companies which carry out hydrocarbon exploration and/or production activities in Argentina.
  2. Submission. The Plans must be submitted before the Hydrocarbons Sub-Secretariat.
  3. Further requirements. When submitting the Comprehensive Plan, the hydrocarbon-producing companies must implement concrete measures, prioritizing the efficiency and use of gas resources, and the reduction and/or capture of emissions.
  4. New facilities. Hydrocarbon-producing companies with new facilities must incorporate good practices and appropriate management actions to minimize emissions from the planning and designing stage.
  5. Transparency. The information arising from the Plans will be published on the Energy Secretariat’s website.

The Hydrocarbons Sub-Secretariat will issue the complementary regulations in order to enforce the Resolution.

Click here to access the Spanish version.

Author

Ezequiel Artola is a partner in the Energy, Mining and Infrastructure Practice Group in Buenos Aires. He advises clients on a variety of complex transactional, general commercial and regulatory matters, with emphasis on mergers and acquisitions, joint ventures, commercial agreements and corporate practice. Ezequiel was assistant professor of commercial and civil contracts at the Universidad de Buenos Aires, and has written articles related to mining, oil and gas, and distribution and agency agreements.

Author

Tomás Trusso is an Associate in Baker McKenzie, Buenos Aires office.

Author

Juan Bautista Cervio is an Associate in Baker McKenzie, Buenos Aires office.

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