EU Methane Regulation: Reducing Emissions Across Energy Sectors

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As COP28 opens in Dubai, the European Union is bringing a new climate commitment to the global stage. A sweeping agreement aims to curb methane emissions across Europe’s energy supply chains, forming a cornerstone of the Green Deal’s push for a net reduction in greenhouse gases. The proposal, still awaiting ratification by the Council and the European Parliament, anchors Europe’s efforts to cut emissions within the broader goal of reducing net greenhouse gases by at least 55% by 2030.

Methane, a potent greenhouse gas, ranks just after carbon dioxide in its impact on global warming and accounts for about a third of current climate warming. Reducing methane is seen as a critical lever to meet the EU’s climate targets, according to Teresa Ribera, the vice president for ecological transition on behalf of the current EU presidency. Pascal Canfin, a co-sponsor from the European Parliament, described methane as a weak point in the past and noted that it is no longer one single issue. Jutta Paulus, another co-sponsor, added that the EU would arrive in Dubai with concrete measures in hand.

The European Commission’s December 2021 proposal introduces new, time-bound requirements for the first time. It targets the oil, gas, coal, and related sectors with a framework to measure, report, verify, and enforce methane emissions. The plan includes mitigation measures to prevent leaks, such as proactive leak detection and repair, and limits on ventilation and flammability. A key feature is the establishment of global monitoring tools to ensure transparency for methane emissions linked to imports of oil, gas, and coal into the EU.

Detection and repair program

Under the regulation, operators in affected sectors must implement a methane leak detection and repair program and submit it to the relevant national authorities within nine months of the rule coming into force. Initial leak detection and repair work on existing sites must begin within twelve months. If any component leaks methane above defined thresholds, it must be repaired or replaced promptly, typically within five days after detection. A ban on venting and burning methane from drainage stations will be phased in, with restrictions extended to ventilation wells by 2027, subject to certain exceptions. The agreement also requires the EU to inventory inactive or abandoned wells and develop mitigation plans for them.

In relation to coal, the agreement mandates continuous measurement and reporting of methane emissions from both underground and open-pit mines. Governments will be required to maintain a public inventory of mines closed or abandoned over the past 70 years and to monitor emissions from those sites, excluding mines flooded for more than a decade. The regulation foresees a ban on combustion starting in 2025 and a ban on ventilation from 2027 for coal mines emitting more than five tons of methane per kiloton of mined coal, and from 2031 for mines emitting more than three tons. Venting and burning in closed or abandoned mines will be prohibited from January 1, 2030. Finally, importers of oil, gas, and coal will need to demonstrate equivalent monitoring, reporting, and verification at the production level.

The EU is a key participant in the Global Methane Pledge, a coalition of more than 150 countries that aims to cut global methane emissions by at least 30% below 2020 levels by 2030. This initiative targets sectors such as agriculture, waste, and energy, which together represent the majority of emissions in the EU. The European Environment Agency provides ongoing assessments of methane trends and the effectiveness of policies aimed at reducing this powerful greenhouse gas, with the overarching goal of limiting global warming to safe levels for future generations. (Source: European Environment Agency; Global Methane Pledge)

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