EU to mandate methane tracking and reductions in energy sector

The European Council and Parliament have reached a provisional political agreement on a regulation on tracking and reducing methane emissions, a powerful greenhouse gas responsible for a third of current climate warming, specifically in the energy sector.

The regulation introduces new requirements for the oil, gas and coal sectors to measure, report and verify methane emissions, as well as put in place mitigation measures to avoid such emissions, including detecting and repairing methane leaks and limiting venting and flaring.

It also puts forward global monitoring tools to ensure transparency on methane emissions from imports of oil, gas and coal into the EU.

Said Teresa Ribera Rodríguez, acting Spanish third vice-president of the government and minister for the ecological transition and the demographic challenge: "This agreement is a great achievement in the framework of the ´Fit for 55´ package.

"The text represents a crucial contribution to climate action as methane is a powerful greenhouse gas, second only to carbon dioxide in its overall contribution to climate change and responsible for a third of current climate warming. Reducing methane emissions will help us to achieve EU´s climate goals."

Added Wopke Hoekstra, commissioner for Climate Action: "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.

"Methane is the second most significant greenhouse gas, after carbon dioxide, and it plays an important role in global warming. We now have the tools to reduce it more quickly and continue our work towards becoming the first climate-neutral continent by 2050."

Monitoring, reporting and inspections

With the agreement come specific deadlines and frequencies for monitoring, reporting and inspections of potential sources of methane emissions.

Within specific time periods from the entry into force of this regulation, operators must submit reports on:

• Quantification of source-level methane emissions (within 18 months);
• Direct measurements quantification of source-level methane emissions for operated assets (within 24 months);
• Direct-measurements quantification of source-level methane emissions complemented by Site-level measurements (within 36 months and by 31 May every following year);
• Direct measurements quantification of source-level methane emissions for non-operated assets (within 48 months, and by 31 May every following year).

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Mine operators will have to submit reports containing yearly source-level methane emissions data (within 12 months) for operating mines, as well as monitor the plugged and abandoned mines.

Additionally, competent authorities must carry out periodic inspections to check operators' compliance with the requirements set out in the regulation.

The first inspection must be completed no later than 21 months after the date of entry into force of the regulation.

The period between inspections is to be based on an appraisal of the environmental, human safety and public health risks and must not exceed three years. If a serious breach of the requirements of the regulation is detected, the subsequent inspection must take place within one year.

Leak detection and repair

The aim of leak detection and repair surveys is to identify sources of methane leaks, including other unintentional methane emissions, and to repair or replace the relevant components.

The provisional agreement provides for the adoption of a risk-based approach, drawing a distinction between type 1 leak detection and repair surveys (lower accuracy to find big leaks) and type 2 surveys (higher accuracy to find small leaks) based on minimum detection limits and minimum leak thresholds, and differentiating between aboveground components, underground components, and components below sea level and below the seabed.

The two institutions agreed on allowing operators to use advanced technology systems under specific conditions.

By 12 months, the Commission must, by means of an implementing act, specify minimum detection limits at standard temperature and pressure.

As far as possible, repair or replacement of components is to take place immediately after detection of a leak, or as soon as possible for a first attempt but no later than five days and 30 days for a complete repair. Leaks under a given threshold will be closely monitored.

Implementation phases

The Council and the Parliament agreed on three implementation phases.

The first will focus on data collection and the creation of a methane emitters global monitoring tool and a super emitter rapid reaction mechanism.

In the second and third phases, equivalent monitoring, reporting and verification measures should be applied by exporters to the EU by 1 January 2027, as well as maximum methane intensity values by 2030.

The competent authorities of each member state will have the power to impose administrative penalties if these provisions are not respected.

Inactive, temporarily plugged and permanently plugged and abandoned wells

The provisional agreement provides that member states should maintain and regularly update an inventory of all wells. Proof of no methane emissions should be produced for wells permanently plugged and abandoned less than 30 years ago and, where available, for other wells.

Mitigation plans to remediate, reclaim and permanently plug inactive wells must be maintained and regularly updated.

Finally, in accordance with monitoring, reporting and mitigation measures, mines that have been closed or abandoned for less than 70 years come under the scope of the obligations of the regulation, with an exemption for mines that have been fully flooded for more than 10 years.

The provisional agreement now needs to be endorsed and formally adopted by both institutions.