Ruhollah Nasrollahi
Assistant Professor
Allameh Tabataba'i University
Dr. Ruhollah Nasrollahi is an assistant professor of Asian Studies at ECO College of Insurance, Allameh Tabataba’i Univeristy. He is a legal consultant in energy sector and a member of Iran Central Bar Association. He studied law and political science in Iran, and obtained his PhD in Asian and Middle Eastern Studies from the University of Oxford. His research is focused on interdisciplinary topics shared by law and political science in the Middle East. His professional engagements are in international trade law, Iranian law, and Sharia law.
Participates in
TECHNICAL PROGRAMME | Energy Leadership
ESG and Governance
Forum 28 | Digital Poster Plaza 5
29
April
11:30
13:30
UTC+3
While global energy shifts toward sustainable and environmental-friendly policies, the incorporation of Environmental, Social, and Governance (ESG) principles into oil and gas contracts has become critical for aligning economic objectives of the oil-rich countries with climate challenges and social responsibility. This study examines the potential for integrating ESG frameworks into the Iran Petroleum Contract (IPC), a model designed to attract foreign investment in Iran’s oil and gas sector. While the IPC prioritizes technical and fiscal efficiency, its current structure lacks explicit mechanisms to address ESG risks, mainly carbon emissions, community impacts, and governance transparency.
This research evaluates how ESG considerations can be systematically embedded into the IPC’s contractual clauses, performance metrics, and stakeholder engagement processes. It uses a comparative method to find parallel legal solutions from Norway, Canada, and the UAE, where ESG-aligned petroleum contracts have enhanced project sustainability while maintaining profitability. Key focus areas include carbon capture and storage (CCS) mandates and local content development. The study also identifies challenges unique to Iran’s geopolitical context, including sanctions-related barriers to green financing and technology transfer.
Findings suggest that revising the IPC to include ESG-linked incentives, such as tax rebates for methane reduction or community benefit agreements, could improve Iran’s competitiveness in a decarbonizing global market. The paper includes actionable recommendations for policymakers, emphasizing the dual imperative of meeting Iran’s energy production goals and contributing to global climate targets under the Paris Agreement. By bridging gaps between traditional energy contracting and ESG imperatives, this research offers a roadmap for fostering resilient, socially accountable hydrocarbon development in emerging economies.
Keywords: ESG, Iran Petroleum Contract (IPC), Sustainable Energy, Climate Governance, Hydrocarbon Policy.
Co-author/s:
Rouhollah Saberi, Assistant Professor, University of Hormozgan.
Ida Mokhtassi, PhD Candidate, WU University of Vienna.
This research evaluates how ESG considerations can be systematically embedded into the IPC’s contractual clauses, performance metrics, and stakeholder engagement processes. It uses a comparative method to find parallel legal solutions from Norway, Canada, and the UAE, where ESG-aligned petroleum contracts have enhanced project sustainability while maintaining profitability. Key focus areas include carbon capture and storage (CCS) mandates and local content development. The study also identifies challenges unique to Iran’s geopolitical context, including sanctions-related barriers to green financing and technology transfer.
Findings suggest that revising the IPC to include ESG-linked incentives, such as tax rebates for methane reduction or community benefit agreements, could improve Iran’s competitiveness in a decarbonizing global market. The paper includes actionable recommendations for policymakers, emphasizing the dual imperative of meeting Iran’s energy production goals and contributing to global climate targets under the Paris Agreement. By bridging gaps between traditional energy contracting and ESG imperatives, this research offers a roadmap for fostering resilient, socially accountable hydrocarbon development in emerging economies.
Keywords: ESG, Iran Petroleum Contract (IPC), Sustainable Energy, Climate Governance, Hydrocarbon Policy.
Co-author/s:
Rouhollah Saberi, Assistant Professor, University of Hormozgan.
Ida Mokhtassi, PhD Candidate, WU University of Vienna.
