European Union one step closer to agreement on reducing methane emissions

The European Parliament and the Council have reached a provisional agreement on a new EU regulation aimed at significantly reducing methane emissions in the energy sector. The regulation is expected to affect not only Europe’s energy sector but also supply chains.

Methane, a greenhouse gas that contributes significantly to climate change, is the focus of the regulation agreed by the European institutions. The European Commission announced the agreement on its website. The aim of reducing methane emissions is in line with the objectives of the European Green Deal to cut net emissions of all greenhouse gases by at least 55% by 2030.

A key aspect of the new regulation is strict measures targeting the fossil gas, oil and coal industries. Operators will be required to measure, monitor, report and verify their methane emissions using established monitoring standards.

The regulation also sets out specific measures to reduce emissions. These include mandatory regular surveys to detect methane leaks and subsequent infrastructure repairs, an almost complete ban on routine venting and flaring in the oil and gas sector (including flaring), and restrictions on methane emissions from coal mines.

The regulation also addresses imported energy sources and introduces a methane database that will publicly share emissions data reported by importers and EU operators. From 2027, companies from outside the EU importing oil, gas and coal will have to meet monitoring and reporting requirements similar to those for European companies. The EU will now work on specific methane intensity methodologies and maximum emissions levels.

The agreement is a major step towards mitigating climate change and now awaits formal adoption by the European Parliament and the Council. Once adopted, it will be published in the Official Journal of the European Union and will then become legally binding.

The regulation builds on the EU’s 2020 methane strategy and responds to IPCC reports. The panel warns that methane levels exceed those compatible with the 1.5°C warming limit set out in the Paris Agreement. On this basis, the Global Methane Pledge was adopted at the COP27 global conference, and the regulation also responds to that pledge.