In November 2023, European Union (EU) policymakers reached agreement on the first-ever legislation to reduce methane emissions.
The Regulation on methane emissions reductions in the energy sector (the ‘EU Methane Regulation’) will require the oil, gas and coal industries to reduce methane emissions through a package of monitoring and mitigation measures in the EU and, in the future, across the supply chain.
Methane is the world’s second most important greenhouse gas (GHG). It is in excess of 80 times more potent than carbon dioxide (CO2) over a 20-year period and is responsible for approximately one-third of the warming experienced today.
According to the International Energy Agency (IEA), curbing methane emissions is the most effective means available for limiting global warming in the near-term. In the oil and gas sectors, existing technology can prevent more than 70 per cent of current methane emissions, about 45 per cent at no net cost.