For oil companies, methane abatement offers rapid climate benefits at a relatively low cost. Still, measuring the emissions and putting in place appropriate measures can be complex, and requires financing. Pertamina also has an ambitious methane reduction goal, of 40% by 2030 relative to a 2021 baseline
A dedicated SLB would allow investors to engage directly with Pertamina’s transition, while providing financial incentives for the issuer to deliver on its goals. We propose an SLB tied to Pertamina’s methane target, which would make the company the world’s first National Oil Company to use a performance-linked bond for climate purposes.
