Methane is a powerful greenhouse gas (GHG), the second biggest contributor to climate change after CO₂, and the provisional agreement between the European Parliament and Council on the new EU Methane Regulation to regulate energy sector emissions is seen as crucial to delivering the European Green Deal and reducing the region’s net GHG emissions by at least 55% by 2030.

The Regulation introduces requirements for operators to report regularly to the competent authorities about quantification and measurements of methane emissions at source level, including for non-operated assets, and obliges oil and gas companies to carry out regular surveys of their equipment to detect and repair methane leaks on EU territory within specific deadlines. The Regulation also bans routine venting and flaring by the oil and gas sector and restricts non-routine venting and flaring to ‘unavoidable circumstances’, for example for safety reasons or in case of equipment malfunction.  

It also limits venting from thermal coal mines from 2027, with stricter conditions kicking in after 2031. Furthermore, the new Regulation requires companies in the oil, gas and coal sectors to carry out an inventory of closed, inactive, plugged and abandoned assets.

The Regulation also aims to boost transparency and action on emissions from imported oil, gas and coal, establishing a methane transparency database where data on methane emissions reported by importers and EU operators will be made available to the public.  

As of January 2027, the Regulation will also set out a methane intensity methodology and maximum levels to be met for new contracts for oil, gas and coal.

The new legislation will enter into force once the provisional agreement is formally adopted by both the European Parliament and the Council.

Commenting on the announcement, Kadri Simson, Commissioner for Energy, said: ‘This landmark agreement will allow us to seriously tackle the energy sector’s greenhouse gas emissions in the EU and beyond. This first-of-its-kind regulation enables the EU to curb methane emissions in a cost-effective manner, and address venting and flaring of gas, which make economically and environmentally little sense. This will benefit our planet and will also avoid wasted resources in tight global gas markets.’

Wopke Hoekstra, Commissioner for Climate Action, added: ‘As we head to COP28, it is great news that the EU has one more law to demonstrate to our international partners that we are delivering on our climate targets… We now have the tools to reduce [methane] more quickly and continue our work towards becoming the first climate-neutral continent by 2050.

Under the new legislation, the EC is also proposing to put in place a global methane emitters monitoring tool and a rapid alert mechanism for super-emitting events, with information on the magnitude, recurrence and location of high methane-emitting sources both within and outside the EU.  

Super-emitting events can be tracked by satellite technology, such as that provided by GHGSat. Jean-Francois Gauthier, the company’s Senior Vice President, Strategy, comments: ‘The EU Methane Regulation significantly raises the bar in extending accountability for emissions beyond its borders. Satellites will play a key role in the asset-level measurements which will now be required along the value chain, making it possible to monitor installations over vast territories as oil, gas and coal are extracted and transported to EU countries. These measures will significantly contribute to advancing the Global Methane Pledge signed on the eve of COP26 and help progress towards the 30% reduction target by 2030.’

Accurate data needed  

Meanwhile, a new report from Wood Mackenzie says that methane remains a ‘significant challenge’ for the oil and gas industry, with companies and governments needing to ‘take strong steps to reduce emissions and enforce new standards’.

The study classifies emissions in to two broad categories – ‘snowballers’, which are minor but innumerable, and ‘super-emitters’, which are few by comparison but of very large scale.

‘While super-emitters can be reliably tracked by satellite technology, snowballers cannot and they add up to a large cumulative impact,’ comments Elena Belletti, Global Head of Carbon Research for Wood Mackenzie. ‘So much so, that the currently accepted figure of around 370mn t/y of anthropogenic methane is probably still underestimated.’

‘Tracking and tackling methane have never been more urgent,’ concludes Belletti. ‘COP28 could prove to be a watershed for regulating methane emissions if governments move from voluntary pledges to binding commitments. Through tougher penalties and new incentives, companies can transform methane losses into higher revenues and premium prices for certified low-methane supply.’

World’s first commercial CO₂ sensor in orbit

In other emissions related news, what is claimed to be the world’s first orbital sensor able to pinpoint CO₂ emissions from individual industrial facilities, such as power plants and petrochemical complexes, is now orbiting the Earth.

GHGSat says that its Vanguard sensor is the precursor to a new generation of space instruments that will provide frequent, accurate and independent high-resolution CO₂ data from individual sites, transforming the way CO₂ emissions are monitored, reported and traded.

Unlike public CO₂ satellites already in orbit, Vanguard, which is based on GHGSat’s established methane monitoring satellite technology, can hone in on individual targets and accurately attribute emissions. Although many facility operators will have continuous emissions monitoring systems (CEMS) in place, independent verification can help them optimise day-to-day operations to reduce emissions, and also improve the quality of environmental, social and governance reporting, says GHGSat.  

Meanwhile, at the national and international level, high resolution CO₂ data will add to the accuracy of emissions inventories, the Global Stocktake and scientific modelling of emissions.