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Reducing methane emissions in the energy sector

In “A European Green Deal”

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The European Commission's Work Programme 2021 was adopted on 19 October 2020, and set, for the second quarter of 2021, the development of legislation to reduce methane emissions from the energy sector. The proposed legislative acts will include an impact assessment and will be supported by articles 192 and 194 of the Treaty on the Functioning of the European Union.

It is part of the 'Fit for 55 package' presented in the Work Programme, which focuses on a wide range of policy areas as to achieve the announced 55 % emissions reductions by 2030, as compared to 1990 levels.

The importance of methane emissions in the energy sector, as an important variable in achieving the desired reductions targets, is identified in the new EU strategy to reduce methane emissions, published on 14 October 2020. In the document several sectors are addressed - energy, agriculture, waste and wastewater. 

As identified in the strategic document, the legislative proposals will focus on the energy sector:

  • Compulsory measurement, reporting, and verification for all energy related methane emissions, building on the Oil and Gas Methane Partnership (OGMP 2.0) methodology;
  • Obligation to improve leak detection and repair of leaks on all fossil gas infrastructure, as well as any other infrastructure that produces, transports or uses fossil gas, including as a feedstock;
  • Consideration of legislation on eliminating routine venting and flaring in the energy sector covering the full supply chain, up to the point of production;
  • Extension of the OGMP framework to more companies in the gas and oil upstream, midstream and downstream as well as to the coal sector and closed as well as abandoned sites;
  • Promotion of remedial work under the initiative for Coal Regions in Transition.

On 22 December 2020, the Commission published the inception impact assessment for a proposal for a legislative act to reduce methane emissions in the oil, gas and coal sectors. The public consultation on this document was open from 5 February to 1 May 2021.

On 15 December 2021, the Commission presented a proposal for a regulation on methane emissions reduction in the energy sector. The proposal is aimed at methane sources such as the oil, fossil gas and coal sectors and from biomethane, after it is injected in the gas network. This regulation sets the standards for measurement, reporting and verification of energy sector methane emissions and also seeks to swiftly reduce emissions through mandatory leak detection and repair and a ban on venting and flaring.

In the Parliament, the proposal has been referred to the Committee on Environment, Public Health and Food Safety and the Industry, Research and Energy Committee (joint committee procedure under rule 58 of the Rules of Procedure of the European Parliament). On 26 April 2023, the two committees adopted a joint report by 114 votes in favour, 15 against and 3 abstentions. On 9 May 2023 the Parliament adopted its position ahead of the trilogue negotiations, without changes to the joint report, with 499 votes in favour, 73 against and 55 abstentions. The adopted text introduces a number of amendments to the Commission's proposal. For instance, by 31 December 2025 the Commission would have to propose a 2030 EU-wide binding methane emissions reduction target encompassing all relevant emitting sectors. Furthermore, Member States would also have to set national methane emissions reduction targets as part of their own national energy and climate plans. The text strengthens the requirements related to monitoring and reporting, and shortens the timelines proposed by the Commission. It also introduces new practices that would need to be followed whenever there are significant discrepancies between emissions quantified using source-level methods and those at site-level measurement.

On 15 December 2022, the Council adopted its general approach. In it, the Council clarifies the proposal's provisions and takes into account several types of infrastructures, e.g. offshore platforms, underground pipelines or distribution networks. It opens measuring emissions to the utilisation of various devices and introduces adjustments for particular national or geological conditions.

The European Economic and Social Committee adopted a report entitled 'Revision of the third energy package for gas and measures for methane emissions reduction' on 18 May 2022. The EESC highlights the fact that most methane leakages occur outside of the Union and would therefore be in favour of the development, implementation and enforcement of an 'EU methane performance import standard for gas imports'.

The European Committee of the Regions adopted an opinion on 12 October 2022. It suggests to establish a common methodology for monitoring methane emissions, which would allow for coordinated efforts in methane emissions reductions in the EU. In its opinion, the majority of the proposal's mandatory deadlines would be extended.

On 14 November 2023 a provisional political agreement was reached. The agreed text was endorsed by the Committee of the Permanent Representatives of the Governments of the Member States to the EU on 15 December 2023 and by the ENVI and ITRE committees on 11 January 2024. On 10 April 2024 the file was adopted in plenary with 530 votes in favour, 63 against and 28 abstentions. On 27 May 2024, the Council gave the file its final green light. The final act was signed on 13 June 2024 and published in the Official Journal of the European Union on 15 July 2024.

References:

Further reading:

Author: Henrique Simões, Members' Research Service, legislative-train@europarl.europa.eu

Visit the European Parliament pages on climate change.

As of 20/11/2024.