Agreement on the EU methane regulation: measurement, leak repair, a ban on routine flaring

The European Parliament and the Council of the EU reached on 15 November 2023 a provisional agreement on the first EU regulation on reducing methane emissions in the energy sector. The rules cover oil, natural gas and coal: they impose an obligation of measurement and reporting in line with uniform standards, regular inspections to detect and repair leaks, limits on routine venting and flaring of gas, and requirements for imported fuels. For the biogas industry this is an important context: methane becomes the subject of detailed regulation, and its measurement a standard.

What is changing

The most important elements of the compromise:

• Measurement and reporting: operators will report emissions on the basis of measurements, and not only estimates, and subject them to verification,
• LDAR (leak detection and repair): mandatory inspections and repair of leaks at set intervals,
• Venting and flaring: a ban on routine venting and flaring, with exceptions related to safety,
• Coal: requirements for mines, including those on methane drainage,
• Imports: after a transitional period (about three years), importers must show that suppliers from outside the EU apply comparable standards; Member States are to monitor this on the market.

The agreement was preceded by lengthy negotiations on the scope of imports, which raised concerns among some countries about gas prices and supplies.

Significance for the industry in Poland

Poland is an important producer of hard coal and has a gas system supplied by imports, so the regulation matters for it: mining will have to report and limit methane emissions, and the gas sector will have to carry out tightness inspections. For biogas and biomethane plants the rules are not directly addressed to them, but they create an environment in which the tightness of installations is a value. Grid operators will increasingly expect high standards from everyone feeding in gas.

Methane policy indirectly improves the competitiveness of biomethane: fossil gas, burdened with monitoring costs and import restrictions, may become more expensive, and biomethane from waste gains a climate advantage.

What to pay attention to

Biogas producers should implement their own programmes for leak inspection and emissions documentation, even if they are not directly covered by the regulation. Measurements on biogas tanks, compressors and upgrading systems may become part of the requirements in contracts with customers and in certification.

An important distinction

The regulation concerns only the fossil energy sector, but the Union is also working on other methane reduction tools, including agricultural policy and waste rules. For agriculture and waste management, good practices remain important: tight storage of natural fertilisers, fermentation of manure and slurry, and capture of landfill gas.

On the gas market, meanwhile, the question arises of how reported methane emissions will affect the pricing of natural gas and biomethane in long-term contracts. Customers who report their carbon footprint will require confirmed data from suppliers.

What next

The agreement must be approved by Parliament and the Council. After it enters into force, Member States will designate supervisory authorities and introduce sanctions. The gas industry is preparing measurement and reporting systems.