The first ever EU regulation on limiting methane emissions becomes law in the country

Given the urgent concerns about climate change, the European Union (EU) has set standards to limit methane emissions from the power sector, and historic EU-wide regulations to reduce methane emissions in Europe and its supply chains have been published in the Official Journal of the European Union.

Following the proposal for EU rules on methane in the energy sector in December 2021 as part of the implementation of the European Green Deal, the European Parliament adopted its position on a new law to reduce methane emissions in the energy sector, enabling representatives of the European Parliament, the Council of the EU and the European Commission to meet and reach a compromise agreement on the regulation proposed by the European Commission.

The new law, seen as the first EU piece of legislation aimed at reducing methane emissions, covers direct methane emissions from oil, gas, coalAND biomethane once injected into the gas grid, it was expected to come into force in early 2024. While the EU’s first-ever methane emissions regulation has officially become law, the 27 member states are expected to start implementing it in 2025.

Methane regulation, known as EU 2024/1787aims to reduce methane emissions from energy imports because it aims to reduce these emissions in the EU and far beyond its borders by setting stringent new limits on emissions from fossil fuel activities in Member States and applying stringent standards to the many exporters of oil, coal and natural gas that supply the EU.

However European Environmental Defence Fund (EDFE) – a non-governmental organization (NGO) looking for ways to clean the air, decarbonize maritime transport and reduce methane pollution – points out that the success of the regulation depends to a large extent on “rigorous and fast” Implementation by Member States.

Flavia SollazzoSenior Director for EU Energy Transition at EDF Europe, emphasised: “The adoption by the EU of the Methane Regulation is a significant step forward in slowing climate change. It is an ambitious and groundbreaking regulation that sets comprehensive standards for methane emissions across the entire energy supply chain.

“As a cornerstone of the European Green Deal, it reaffirms the EU’s commitment to tackling climate change. Importantly, it signals an end to the EU outsourcing pollution outside its borders. By addressing emissions across the supply chain, the EU is taking responsibility for its large external methane footprint as part of its decarbonisation path.”

In addition, EDFE stresses the need for EU Member States to designate national authorities six months after the entry into force of the Regulation to supervise compliance by oil, gas and coal operators, as well as importers and independent verifiers. Furthermore, the European Commission is expected to propose secondary legislation on the methodology to be followed by EU importers when reporting methane emission intensity.

Helen Spence-JacksonExecutive Director of EDF Europe, emphasized: “Advanced monitoring, measurement and tracking technologies like MethaneSAT empower policymakers, industry and society. This radical level of transparency eliminates excuses and demands immediate action.

“The key to success now is proper implementation, which requires cross-sectoral cooperation. By working together, we can build a comprehensive understanding of emissions and develop effective solutions that benefit all. This regulation provides a framework for constructive cooperation, paving the way for real progress in the fight against climate change.”

In addition, EDFE emphasises that from January 2027, EU importers will be subject to the same monitoring, reporting and verification obligations, once domestic emissions are addressed. As a result, importers will have to demonstrate that producers measure, monitor, report and verify methane emissions in line with the requirements of the Regulation in all contracts concluded with exporters.

Sollazzo concluded: “The real work begins now: holding the industry to account is key and we expect Member States to act quickly. Immediate steps include implementing national methane emission reporting requirements by next year, finalising import standards and developing comprehensive monitoring, reporting and verification (MRV) systems that transcend national borders.

“Moreover, transforming this regulation from policy into global climate action will require building strong international alliances to expand its influence. This is not just about EU leadership – it is about driving global change on methane action and slowing the rate of global warming.”

In order to step up climate action, the EU has attempted a coordinated withdrawal from the Energy Charter Treaty (ECT) to counteract and neutralise the operation of the ECT’s sunset clause, as such a clause would extend protection for existing energy investments for another 20 years after the withdrawal enters into force.

In June 2024, the final and formal step was taken to end participation in the Energy Charter Treaty, which provides protection to energy investors, primarily those involved in fossil fuels, benefiting from its provisions. investor-state dispute settlement (ISDS) a mechanism for suing governments for billions of dollars over climate policies that hinder coal, oil and gas projects.

As a result, the withdrawal will take place in a year, but the way is left open for the remaining member states to improve the treaty and create space for energy transition and net-zero emission aspirations.