Legal Strategies for Green Development in Iran’s Oil Sector: Sustainable Management of Associated Petroleum Gas

Document Type : Review Article

Authors

1 Associate Professor, Department of Private and Islamic Law. Faculty of Law and Political Science. University of Tehran. Tehran, Iran

2 Oil and gas law, faculty oc law, university of Tehran.

Abstract

Associated petroleum gas (APG) management presents a major environmental, economic, and legal challenge for oil-producing nations. As a byproduct of crude oil extraction, APG is frequently flared or vented, causing extensive greenhouse gas emissions, energy waste, and regional air pollution. Iran, despite its vast hydrocarbon reserves, flares around 17 billion m³ of APG annually—equivalent to 70 million tons of CO₂ emissions—constituting roughly 40 percent of national methane output. The Amak project, launched to curb this practice through technological modernization and institutional coordination, targets a 30 percent reduction in flaring by 2030. Employing a comparative‑analytical legal methodology, this study examines Iran’s APG regulatory framework, assesses the Amak project’s progress, and benchmarks it against exemplary experiences in Norway and Canada. The analysis identifies four interrelated deficiencies: (1) legal conflicts and gaps, notably between the Petroleum Law’s production‑maximization mandate (Article 22) and weakly integrated environmental statutes; (2) weak enforcement, with nominal penalties and limited regulatory access to real‑time flaring data; (3) institutional fragmentation among the Ministry of Petroleum, Department of Environment, and judiciary; and (4) technological and financial constraints under international sanctions. While the Amak initiative has cut flaring by 18 percent regionally, progress remains hindered by these systemic barriers. Comparative insights highlight Norway’s 95 percent flaring reduction achieved through carbon taxation (~ US$85 per ton CO₂), emission quotas, and stringent oversight, and Canada’s IoT‑based “FlareNet” monitoring network ensuring transparency and accountability. To achieve similar outcomes, Iran requires a holistic reform package: integrating environmental objectives within petroleum law, instituting carbon pricing mechanisms, expanding digital monitoring capabilities, strengthening inter‑agency governance, and incentivizing gas‑capture investment. Aligning legal, economic, and technological strategies can transform APG from a waste stream into a sustainable energy asset, advancing Iran’s compliance with the Paris Agreement and its broader sustainable‑development and public‑health ambitions.

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References

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Green Development Management Studies
Volume 4, Special Issue
November 2025
Pages 223-233

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History

  • Receive Date: 01 June 2025
  • Revise Date: 17 August 2025
  • Accept Date: 18 November 2025

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