Present and future of oil and gas exploration and production transition-out: What can Iran learn from Quebec's Act?

One approach to supply-side climate policy is phasing out the production of fossil fuels by enacting bans or moratoriums on new or active upstream projects. Some countries have enacted national ban legislation on new petroleum licensing rounds or extensions of current exploration and production licenses. Beyond that, some jurisdictions like Quebec have created an act that explicitly revoked issued or to be issued petroleum licenses for exploration and production operations. Quebec’s Act on ending petroleum exploration and production regulates some institutional, technical, environmental, and financial issues regarding oil and gas phaseout which can be localized and adopted by other countries.Hence, this paper investigates what can Iran learn from the Quebec’s Act. By analyzing the Quebec’s Act and applying it to the Iranian legal system, I conclude that winding down petroleum production in Iran requires major legal and institutional reforms. The legal regime on awarding the right of exploration and production of petroleum reserves in Iran is in a state of confusion and chaos and at first, this regime shall be modified or developed in consistency with Quebec’s Act. Then, the institutional capacity of the new regime shall be utilized along with other institutions to translate ending petroleum exploration and production policy into legislation. By so doing, the proposed legal regime on petroleum rights awarding has the potential to effectively implement and monitor the ban or revocation legislation.