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Energy

Methane emissions

The EU methane strategy aims to reduce methane emissions, improve air quality and reinforce the EU’s global leadership in the fight against climate change.

Methane is the second most important greenhouse gas contributor to climate change following carbon dioxide. In fact, methane’s ability to trap heat in the atmosphere is even stronger than that of carbon dioxide.

On a 100-year timescale, methane has 28 times greater global warming potential than carbon dioxide and is 84 times more potent on a 20-year timescale.

According to the International Energy Agency, the annual increase in methane concentration from 2020 to 2021 was the highest on record and real-time data shows that levels continued to increase in 2022. When using fossil gas for electricity generation, lifecycle methane emissions must not exceed 3% of delivered volumes, because in climate terms, it would then be better to use coal for electricity generation. Abating methane emissions is therefore highly relevant to achieving the 2050 climate objectives. Moreover, methane is a potent local air pollutant and contributor to ozone formation, which causes serious health problems.

Key figures on methane

2nd
most important GHG contributor to climate change
60%
of the global methane emissions result from human activity
1/3
of this comes from the energy sector

According to the Climate and Clean Air Coalition (CCAC) Scientific Advisory Panel, reducing methane emissions associated with human activity by 50% over the next 30 years would mitigate against global temperature change by 0.2°C, a significant step towards keeping the overall temperature increase below 2°C.

The International Energy Agency estimates that more than 260 bcm of gas was wasted worldwide in 2021 due to flaring, venting and leaking and that 47% of those emissions can be mitigated with existing technology through measures, such as leak detection and repair. That gas could contribute to the EU security of supply, greater liquidity and help lower prices. It could also mean that new reserves would not be needed to take us to 2050. Given the market value of the additional gas captured through such measures, 40% of these mitigations would have no net-cost.

EU methane strategy

Tackling greenhouse gas emissions is a priority of the European Green Deal.

The EU’s methane strategy (COM2020/663), published in October 2020, sets Europe’s ambition and aims to curb temperature increases, improve air quality and reinforce the EU’s global leadership in the fight against climate change.

It focuses on reducing methane emissions in the energy, agriculture and waste sectors, which account for almost all human-related methane emissions.

This cross-sectoral approach takes targeted action in each area while also promoting synergies across sectors, for example through the production of biomethane.

Regulation on methane emissions reduction in the energy sector

The rules introduced by the regulation include

  • improved measurement, reporting and verification of energy sector methane emissions
  • an immediate reduction in emissions through mandatory leak detection and repair and a ban on venting and flaring practices, which involve the release of methane directly into the atmosphere
  • a methane transparency requirement on imports, collecting information on whether and how exporter countries/companies are measuring, reporting and abating methane emissions, with a view to establish a methane intensity profile of those entities

EU rules on the measurement and reporting of methane emissions build on the Oil and Gas Methane Partnership 2.0 (OGMP 2.0) framework to help understand the exact locations and volumes of methane emitted, allowing a shift from estimates to direct measurements of methane emissions, checked by independent verifiers. The urgency to tackle methane emissions is reflected in the rules on mitigation that aim to deliver reductions soon after the legislation enters into force.

For oil and gas, companies are required to frequently survey their equipment to detect leaks. If found, they need to be repaired immediately, mostly within 5 or 15 working days and monitored to ensure that repairs were successful. The regulation also bans venting and routine flaring, allowing venting only in exceptional or unavoidable circumstances for safety reasons. It allows flaring only if re-injection, utilisation on-site or transport of the methane to a market are not technically feasible, with more restrictive rules for how it can be carried out.

For coal, the regulation envisages a phase out of venting and flaring of methane, ensuring that safety aspects in coal mines are accounted for. It also obligates EU countries to establish mitigation plans in the case of abandoned coal mines and inactive oil and fossil gas wells.

Partners and initiatives

As methane emissions transcend national borders, the European Green Deal stresses the need for international collaboration.

Global Methane Pledge

President von der Leyen and President Biden launched the Global Methane Pledge (GMP) at COP26 in Glasgow 2021 to slash methane emissions by 30% by 2030.

At COP27 in 2022, the EU also confirmed its commitment on methane emission reduction by endorsing a ‘Joint declaration on reducing greenhouse gas emissions from fossil fuels’, together with the United States, Japan, Canada, Norway, Singapore, and the United Kingdom. Together they represent 50% of global gas import volumes and over 30% of global gas production. And they aim to take steps to reduce the methane emissions associated with their energy consumption, which can spur emissions reductions across the value chain.

Since its launch, the pledge has generated unprecedented momentum for methane action. Country endorsements have grown from just over 100 in 2021 to over 150 in 2023, representing 80% of the global economy, and more than 50 countries have developed national methane action plans or are in the process of doing so.

In September 2023, at the occasion of the UN General Assembly, Canada, the Federated States of Micronesia, Germany, Japan, and Nigeria joined the EU and the US as Global Methane Pledge Champions. In September 2024, at New York Climate Week, GMP Champions called for all GMP countries to reflect methane reduction efforts in their national plans to mitigate climate change, called Nationally Determined Contributions. At the same occasion, they published a European Commission - GMP Methane Action Update describing achievements to date. 

Cooperation with major fossil fuel importers

The EU is the largest fossil fuel importer, therefore it has the responsibility of taking action to incentivise methane abatement measures in the supply chains. Cooperation with other major importers can also send a powerful political signal to motivate further action. 

After the Joint Statement on ‘Accelerating methane mitigation from the LNG value chain’ signed by the European Commission, Japan, US, Australia and South Korea in 2023, Japan and the Commission have strengthened their cooperation on the implementation of Global Methane Pledge targets. This is reflected in their LNG importers’ initiative alliance for methane mitigation from the LNG value chain announced at the LNG-Producer Consumer Conference in 2024, striving for alignment on data transparency, monitoring and reporting standards as well as mitigation action in exporting countries. 

Methane Finance Sprint

At the Major Economies Forum in April 2023, the EU joined the Methane Finance Sprint, launched by President Biden asking governments to contribute to the goal of mobilising at least $200 million in new methane finance for projects by COP28.

GMP Energy Pathway

In June 2022, a GMP Energy Pathway was launched at the Major Economies Forum on Energy and Climate to accelerate methane emissions reductions in the fossil energy sector. 

A GMP Food and Agriculture Pathway and GMP Waste Pathway were launched in the margins of COP27, where the EU and the US convened a Methane Ministerial to highlight the progress and discuss further implementation steps, including enhanced efforts leading up to COP28.

MMRV Working Group

The new International Working Group on measurement, monitoring, reporting and verification (MMRV) was publicly announced on 15 November 2023. It’s a follow up action to the Joint Declaration on reducing greenhouse gas emissions from fossil fuels adopted at COP27, where the importance of adopting robust measurement, monitoring, reporting, and verification frameworks at international level was highighted.

The Working Group members include 12 countries, the European Commission and the East Mediterranean Gas Forum (as observer): Australia, Brazil, Canada, Colombia, France, Germany, Italy, Japan, Norway, Republic of Korea, United Kingdom and the United States of America.

It aims to develop a consensus-based approach for the MMRV of greenhouse gas (GHG) emissions across the international supply chain of natural gas, from pre-production through final delivery, to enable the provision of comparable and reliable information as well as to better equip companies with tools to rapidly reduce their GHG emissions.

The Working Group will also advance data accuracy and comparability by building upon well-established and globally recognised frameworks, particularly OGMP 2.0, which today includes over 115 companies with assets in more than 60 countries, representing over 35% of the world’s oil and gas production and over 70% of LNG flows.

International Methane Emission Observatory

To help take the issue forward, the Commission supported in 2021 the establishment of the International Methane Emission Observatory (IMEO) together with the UNEP, the Climate and Clean Air Coalition and the International Energy Agency.

Funding from EU Horizon 2020 kick-started the development of the observatory, followed by further contributions from the EU through the Neighbourhood, Development and International Cooperation Instrument (NDICI) and from other partners, such as the Global Methane Hub and Bezos Earth Fund.

The IMEO collects and verifies methane emissions data to provide the international community with an improved understanding of global emissions and where abatement action should be focused. It provides a sound scientific basis for the implementation of the Global Methane Pledge. Its collected data help to prioritize actions and monitor results against commitments made by state actors as well as oil and gas companies.

The IMEO also coordinates the Oil and Gas Methane Partnership 2.0 (OGMP 2.0), the flagship oil and gas reporting and mitigation programme of UNEP. It is the only comprehensive, measurement-based international reporting framework for the sector, which today covers 35% of oil and gas producers and 70% of LNG flows.

In November 2022, at the COP27 in Sharm El-Sheikh, IMEO announced the Methane Alert and Response System (MARS), a satellite-based system to detect methane emissions. It has started through pilots to detect major emissions from the energy sector, and in the future, it will expand to cover other methane emitting sectors, such as waste and livestock.

Climate and Clean Air Coalition

The EU is actively involved in several international initiatives on reducing methane emissions, including through the Climate and Clean Air Coalition (CCAC), established under the United Nations Environment Programme (UNEP). The CCAC works to tackle short-lived climate pollutants, such as methane and black carbon, in an effort to combat climate change and improve local air quality. In this context, the Commission submitted an EU methane action plan in November 2022 to appear alongside other national plans. The CCAC Super Pollutant Ministerial adopted a communique in September 2024, calling for a 'Now We Can' approach to increase ambition to slow near-term warming and improve air quality.  

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