EU reaches agreement to limit CH₄ emissions in the EU and from fossil fuels imports

The Council of Europe and the European Parliament have reached an agreement on a new EU Regulation to reduce methane (CH₄) emissions in the European energy sector and in global supply chains. 

The EU Methane Regulation introduces requirements for the EU oil, gas and coal sectors to measure, report and verify their methane emissions, including regular inspections to check and fix leaks on their operations. It also bans most cases of flaring and venting (intentional burning and releasing of unwanted methane into the atmosphere) with immediate effect on the oil and gas sector, while the coal sector should be banned from flaring in 2025 with venting being allowed until 2027, with stricter conditions applying as of 2031.

The regulation aims to impose CH₄ emission limits on fossil fuels imports. It sets up a methane transparency database on CH₄ emissions reported by importers and EU operators, mandates the European Commission to establish methane performance profiles of countries and companies and sets up a global methane emitters monitoring tool and a rapid alert mechanism for super-emitting events. As of 2027, new import contracts for oil, gas and coal will be only concluded if the same monitoring, reporting and verification obligations are applied by exporters as for EU producers. 

The EU Methane Regulation was proposed in 2021 as part of the European Green Deal by the European Commission and it is expected to immediately enter into force once it receives the final approval of the European Parliament and the EU member states, with the limit on methane emissions being set out by the European Commission before it applies. The European Union aims to reduce 30% of the European methane emissions by 2030.