European Methane Regulation

The European Methane Regulation came into force on 5 August 2024. It is part of the EU's ‘Fit for 55’ package, which aims at reducing greenhouse gas emissions in the EU by at least 55 percent by 2030. Moreover, Germany committed to reduce methane emissions by 30 percent by 2030 compared to 2020 levels at the 26th Conference of the Parties of the UNFCCC.

Table of Contents

 

What is the regulation about?

The EU Methane Regulation 2024/1787 requires fossil energy infrastructures operators to measure methane emissions regularly, eliminate leaks quickly and reduce the venting and flaring of gases. In Germany, monitoring is carried out by the monitoring authorities of the federal states, while the German Environment Agency is responsible for the annual emissions reporting. The regulation is coordinated by the Federal Ministry for Economic Affairs and Climate Action. The operators' emissions data is aggregated and published on this website. They are also included in international reporting on greenhouse gas emissions (in German). This creates transparency and enables a direct comparison with other countries.

The regulation not only aims at reducing direct methane emissions in Europe's energy sector. It also takes into account emissions from fossil fuels that are not generated in the EU, but occur before they are made available in Europe (upstream emissions). Thus, Europe can also work towards establishing minimum environmental standards in producing countries when importing fossil fuels.

 

Which fuels contain methane?

Natural gas is a gas mixture that consists mainly of methane. The composition varies among production sites. In Germany, the share of methane in the natural gas grid is between 80 and 95 percent.

Biogas is a gas mixture that is created during the fermentation of biomass. The composition depends largely on the substrates used. The methane content is around 60 percent. Biogas is often converted into electricity directly onsite. When it is fed into the natural gas grid, biogas is ‘conditioned’, i.e. unwanted components are removed. The product from this process is known as biomethane. However, biomethane is only considered under the Methane Regulation if it is mixed with natural gas and transported via pipelines.

Mine gas is a gas mixture that escapes during the scribing of hard coal. As the pressure is reduced during tunnelling, the methane bound in coal flows into the tunnel. This process continues even after mining is completed. The gas then funnels to the surface via the old shafts. The composition depends on many parameters and can range from methane contents of a few percent up to 95 percent.

Associated gas is inevitably produced during oil production. This gas is made up of various hydrocarbons – including methane – as well as other non-hydrocarbon gases. If there is no direct use, the gas is injected back into the reservoir to maintain pressure, but it can also be flared, or, in the worst case, released into the atmosphere uncontrolled.

 

What does the regulation cover?

In accordance with Chapter 1, the Regulation covers

  • the exploration for and extraction of crude oil and natural gas and the gathering and processing of natural gas,
  • inactive wells, temporarily plugged wells and permanently plugged and abandoned wells
  • transport and distribution of natural gas,
  • underground storage of natural gas and activities at liquefied natural gas (LNG) terminals and facilities, including liquefaction and regasification,
  • active underground and surface coal mines, abandoned underground coal mines and abandoned underground coal mines and,
  • in accordance with Chapter 5, methane emissions outside the European Union from crude oil, natural gas and coal later placed on the market in the European Union.
The pie chart shows the proportion of fugitive methane emissions in Germany. Natural gas users, natural gas distribution and natural gas transport dominate.
Fugitive methane emissions in Germany; a large part is not covered by the regulation.
Source: Umweltbundesamt
 

How much methane does the regulation cover?

Almost 80 percent of Germany's methane emissions come from agriculture, land use, land use change and forestry (LULUCF). Other sources of emissions are combustion processes in road transport and stationary plants as well as emissions from wastewater and sewage sludge treatment.

Emissions from the provision of fossil fuels account for less than 5 percent of total national methane emissions – but this is the only part covered by the Methane Regulation. It should be noted that EU member states – in accordance with international regulations – report their emissions according to the territoriality principle. This means that only emissions generated directly in a country are recorded. As Germany is one of the largest importers of fossil fuels, emissions generated during transport and extraction (upstream emissions) are not included in the national inventories. From a global perspective, it is precisely these upstream chain emissions that contribute over 30 percent to total methane emissions. In some countries associated gases from oil production are released into the atmosphere unused, mine gas from disused coal mines escapes into the atmosphere through old tunnels and shafts and enormous quantities of natural gas escape from natural gas infrastructure due to inadequate monitoring and maintenance.

In order to exert influence on the producing countries, the EU applies the Methane Regulation in such a manner that imports of fossil fuels with low upstream emissions are favoured. Moreover, the EU is demonstrating that it is possible to minimise fugitive emissions. As the International Energy Agency (IEA) shows, this can often even be cost-neutral or yield financial benefits.

The design of this instrument is currently being discussed internationally.

 

Why is agriculture and LULUCF not included in the regulation?

The methane regulation is just one part of the EU's Fit for 55 package. This comprises a multitude of programmes and mechanisms to reduce emissions in the EU. The sectors agriculture, land use, land-use change and forestry (acronym: LULUCF) are also covered by the ‘Effort Sharing Regulation’. It stipulates that greenhouse gas emissions in the sectors covered by the regulation must be reduced by 40 percent by 2030 compared to 2005.

 

What has already been achieved?

In fact, considerable efforts to minimise methane emissions had already been made before the Methane Ordinance came into force. Whereas in 1990, 1,343 kilotons of methane were still being emitted from diffuse sources for the provision of fossil fuels, 30 years later this figure has fallen to just 80 kilotons. In the case of natural gas, the rather damage-prone grey cast iron pipelines were replaced by steel or plastic pipelines. With the introduction of the Renewable Energy Sources Act (EEG) in 2000, emissions from decommissioned coal mines were reduced by over 98 percent thanks to remuneration for the economic generation of electricity from mine gas. The gradual phasing out of subsidised coal mining is also a key driver of the decline in methane emissions. In recent years, comprehensive leak detection and repair (LDAR) programmes and the use of modern technologies, such as mobile compressors, have also reduced emissions from gas transport and distribution.

The area diagram shows the historical development of fugitive methane emissions: While coal mining still dominated in 1990, currently only natural gas transport, natural gas distribution and user emissions play a role.
Fugitive methane emissions have fallen by 95 per cent since 1990
Source: Umweltbundesamt