EU Methane Regulation for the Energy Sector

Policy Engagement Overview

The aggregated evidence of corporate and industry lobbying on the Methane Regulation proposal shows intense, negative engagement from the oil and gas industry, while some renewable energy utilities took positive positions.

Long-term Lobbying Trends

• The oil and gas industry did not support prescriptive measures for leak detection and repair, advocating against measurement verification and reporting obligations, and did not support the banning of routine flaring and venting. This has included advocacy from companies such as BP, Eni, Equinor, and industry associations International Association of Oil and Gas Producers (IOGP) and GasNaturally.

• The oil and gas industry also advocated against measures on imports. Entities advocating this position include industry associations Eurogas and Gas Infrastructure Europe, and gas infrastructure company, Snam.

• Renewable energy utilities support higher ambition, by advocating for the introduction of binding methane emission reduction targets, penalties for non-compliance, and the measures for imported fossil fuels. This has included advocacy from companies such as Enel and Iberdrola.

Impacts on Policy Ambition

Policy Progress

The Methane Regulation proposal from the European Commission introduced:

• Strict standards and measures: The EU Commission proposed high standards for measurement, reporting and verification (MRV) for methane emissions, stricter rules for leak detection and repair (LDAR).
• Ban on routine flaring and venting: The proposal prohibits routine flaring, and routine venting except under certain circumstances.
• Limited action on imported fossil fuels: The EU is dependent on imports for 90% of its fossil gas consumption. However, the proposal only appears to tackle methane emissions from imported fossil gas through use of “diplomatic dialogue” with international partners
• Not binding methane emission reduction target: The Commission’s proposal does not provide any binding or prescriptive reductions targets for methane emissions.
• The European Commission has also announced that it will review the regulation in 2025

The EU Council’s Proposal of the Methane regulation for the energy sector significantly weakened the ambition of the EU Commission’s proposal.

• Weaker measures for leak detection and repair: The EU Council’s proposal reduced the frequency of leak detection and repair (LDAR) measures, weakening the Commission’s mandatory checks every 3 months to checks every 6 months.
• Loopholes in the ban on routine flaring and venting: The Council watered down requirements for inspections on routine flaring, and removed the Commission’s plan to report flaring events during shutdowns.
• No further action on imported fossil fuels: Similarly to the EU Commission’s proposal, the EU Council did not include measures to tackle methane emissions from imported fossil fuels, only specifying for them to be tracked. However, a provision was added for the EU Commission to assess the implications of extending the regulation to imports as part of its next revision.