Billions of dollars in energy wasted as global flaring continues to rise

The latest edition of the Global Gas Flaring Tracker highlights the growing scale of a problem that continues to affect both energy security and climate goals.

Global gas flaring increased for the third consecutive year in 2025, reaching 167 billion cubic metres and wasting natural gas valued at an estimated $54 billion, according to a new report from the World Bank Group.

The latest edition of the Global Gas Flaring Tracker highlights the growing scale of a problem that continues to affect both energy security and climate goals. The volume of gas burned off at oil production sites last year was nearly equal to the entire annual gas consumption of Africa and exceeded the amount of liquefied natural gas that passes through the Persian Gulf each year.

Gas flaring occurs when natural gas produced alongside oil is burned instead of being captured and used. While the practice has existed for decades, energy experts say the continued loss of such vast quantities of fuel is becoming increasingly difficult to justify at a time when many countries are struggling with rising energy costs, electricity shortages and growing demand for reliable power supplies.

The World Bank notes that the gas currently being wasted could help power industries, support businesses, improve electricity access and strengthen economic growth in countries facing energy challenges.

Small group of countries accounts for most flaring

The report identifies nine countries that together are responsible for more than 80 percent of global gas flaring. These are Russia, Iran, Iraq, Venezuela, Mexico, Libya, Algeria, Nigeria and the United States. Although these nations account for less than half of global oil production, they generate the overwhelming majority of the world's flared gas. Many of them simultaneously face domestic energy challenges, creating a situation where valuable fuel is being burned while additional energy resources are imported or shortages persist.

According to the World Bank, eliminating routine gas flaring worldwide would require investments estimated between $70 billion and $100 billion. While this represents a significant financial commitment, the figure is less than twice the annual value of the gas currently being lost.

For countries that depend on imported energy or face high fuel costs, capturing and using associated gas could generate additional revenue, lower energy bills and expand access to electricity. The report argues that the technologies needed to achieve these outcomes are already available and widely understood within the energy sector.

What continues to slow progress are structural barriers, including weak regulations, limited infrastructure, insufficient investment and a lack of prioritisation from both governments and industry operators.

Strong policies shown to deliver results

Despite the global increase in flaring, the report points to examples demonstrating that substantial reductions are achievable when governments and companies commit to action. Kazakhstan is highlighted as one of the strongest performers. Since 2012, the country has reduced gas flaring by 87 percent, including a further 16 percent decline during 2025 alone. The World Bank attributes this progress to a combination of regulatory reforms, investment and consistent policy implementation.

Energy officials say successful reductions require more than technical solutions. Effective governance, access to markets, infrastructure development and clear accountability measures are all considered essential for long-term success.

Demetrios Papathanasiou, the World Bank Group's Global Director for Energy, said the economic costs of continued flaring have become increasingly difficult to ignore, particularly as many countries seek affordable and reliable energy sources. He noted that gas currently being burned could instead support industrial growth, business development and job creation.

Zubin Bamji, Manager of the Global Flaring and Methane Reduction Partnership, said the necessary technologies, financing tools and policy frameworks already exist. The main challenge now lies in ensuring governments and operators treat gas capture as a priority and create the conditions needed for investment and market access.

The report warns that failure to act will continue to result in billions of dollars in lost revenue each year while millions of people remain affected by energy insecurity. Officials argue that reducing routine gas flaring offers a practical opportunity to improve energy access, strengthen economies and reduce unnecessary emissions at the same time.