EU Methane Emissions Regulation for the Energy Sector
ENFORCEMENT TIMELINE
In force since August 4, 2024 (equivalent standards and reporting obligations for imported fossil fuels apply from 2027)
Overview
This regulation mandates leak detection and repair (LDAR) for methane leaks across the oil, natural gas, and coal energy sectors, generally prohibits routine venting and flaring, and requires importers of fossil fuels into the EU to demonstrate equivalent methane emission intensity and monitoring standards.
Enforcement Timeline
August 4, 2024: Regulation (EU) 2024/1787 enters into force.
May 2025: The first reporting obligation for methane emissions data on imported fossil fuels begins.
January 2027: Emission intensity standards and monitoring obligations become fully applicable to EU importers.
2030: A cap on imported methane intensity is introduced, along with penalties for exceeding it.
Business Impact
Energy companies and trading houses that procure LNG, crude oil, and similar fuels need to collect performance data on methane leak prevention across upstream production and transport infrastructure and obtain third-party verification.