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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.

EU rules to reduce methane emissions

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.

Global Methane Pledge

Timeline

  1. November 2024
    COP29
  2. September 2024
    New York Climate Week
  3. December 2023
    COP28
  4. September 2023
    UN General Assembly
    • Canada, the Federated States of Micronesia, Germany, Japan, and Nigeria joined the EU and the U.S. as Global Methane Pledge Champions.
  5. November 2022
    COP27
  6. June 2022
    Major Economies Forum on Energy and Climate
    • A GMP Energy Pathway was launched to accelerate methane emissions reductions in the fossil energy sector. 
  7. November 2021
    COP26
    • GMP launched by President von der Leyen and President Biden.

Partners and initiatives

Next to co-leading the Global Methane Pledge, international cooperation and alignment on mitigation strategies is reflected in all of the EU’s bilateral and multilateral engagements. The importance of a global approach is also highlighted in a 2024 report by the Commission’s Joint Research Centre, which critically evaluates the potential benefits of current legislative frameworks on methane. 

Cooperation with major fossil fuel importers

As the largest fossil fuel importer, the EU has a responsibility and opportunity to incentivise methane abatement measures across 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, the U.S., 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. 

MMRV Working Group

The International Working Group on measurement, monitoring, reporting and verification (MMRV) was publicly announced on 15 November 2023. It is 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 highlighted.

The Working Group members include the European Commission, Australia, Brazil, Canada, Colombia, France, Germany, Italy, Japan, Norway, the Republic of Korea, the UK, the U.S. and the East Mediterranean Gas Forum (as observer).

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 to 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

The Commission supported the establishment of the International Methane Emission Observatory (IMEO) in 2021, together with the United Nations Environment Programme (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 and from other partners, such as the Global Methane Hub and Bezos Earth Fund.

UNEP’s IMEO provides data to the individuals who can act to reduce emissions. To do this, IMEO collects and publishes data through rigorous industry reporting via the Oil and Gas Methane Partnership 2.0 (OGMP 2.0), from satellites via the Methane Alert and Response System (MARS), from its series of global methane science studies, and from national emissions inventories. The IMEO launched its 'An Eye on Methane' data platform in November 2024.

At COP29, the Commission co-hosted the first ever IMEO Ministerial, reaffirming donors’ strong political and financial support to data driven solutions to catalyse methane reductions. 

Climate and Clean Air Coalition

The EU is actively involved in 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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