The power to cut methane is at the EU’s fingertips.
Cutting methane emissions in the oil and gas industry can fight climate change and help secure Europe’s energy supply.
HEAR WHAT THE EXPERTS HAVE TO SAY:
"The technology to cut methane emissions exists. It's simple, affordable, and comes at little to no net cost."
— Environmental Defense Fund Europe (@EnvDefenseEuro) June 12, 2023
Our @Sollazzoff, explains why cutting #methane emissions is a no-brainer to unlock a win for our environment and #EnergySecurity.#CutMethaneEU pic.twitter.com/o4WrtASRCp
To slow global warming, slow down #ClimateChange and boost our energy security, we need to reduce harmful #methane emissions.
— Environmental Defense Fund Europe (@EnvDefenseEuro) June 14, 2023
Hear from our Senior Scientist Daniel Zavala-Araiza why the oil & gas sector must be a policy priority 👇#CutMethaneEU pic.twitter.com/hUvBBeu9B4
Methane is harming our climate.
At least 25% of today’s warming is driven by methane from human actions. Methane, the main component of fossil gas, is a powerful greenhouse gas with 80 times the warming potential of CO₂ for the first 20 years it’s in the atmosphere. Human-caused methane emissions could warm the planet more over the next decade than CO₂ from burning fossil fuels. And its concentrations are rising fast.
Methane concentrations over time in parts per billion. Source: 2 Degrees Institute, 2021
The good news: We can fix this.
Methane emissions come from agriculture, energy and waste industries, but reducing it in the oil and gas sector is the quickest, cheapest and most effective way to slow global warming — and put an otherwise wasted energy source to good use. 70% of emissions in the sector could be reduced with existing solutions, most of them at low or zero net-cost. It’s that simple.
Global sources of human-caused methane
Let’s stop the waste.
Research shows that over half of the EU’s gas needs in 2021 could have been covered by capturing methane emissions from the global oil and gas industry. While energy prices are reaching record highs, we can’t afford to waste a valuable fossil fuel energy source. The new EU Methane Regulation puts an end to this.
4 Solutions to tackle the Methane Problem
As the world’s largest fossil fuel importer, the EU has an opportunity to take a leadership role in driving down global methane emissions and turning science into action. By tackling the main challenges through science-based solutions, we can slow global warming and boost energy security today.
CHALLENGE 1
Lack of credible data
Research shows that methane emissions from the energy sector are 70% higher than official figures. We can’t control what we don’t know, so reliable, measurement-based data is needed to tackle emissions.
THE SOLUTION: Utilize new available technologies for direct measurement of methane within and outside EU borders in line with Oil and Gas Methane Partnership 2.0 standards.
The advanced methane-tracking satellite MethaneSAT will help boost climate transparency and accountability.
CHALLENGE 2:
Leaks
Leaks across oil and gas infrastructure are widespread with many causes like poor maintenance or operating practices. About 40 bcm of fossil gas was wasted through leaks in 2021.
THE SOLUTION: Enforce high-frequency, comprehensive leak detection and repair in-line with best international practice, with enough frequency to capture all leaks, including unpredictable super-emitters.
CHALLENGE 3:
Venting and Flaring
Venting and flaring is the harmful practice of burning or releasing methane into the atmosphere. In 2021, an estimated 140 bcm of associated gas were wastefully flared around the world.
THE SOLUTION: Prioritize gas capture and allow venting and flaring only in case of emergency and flaring only under ambitious efficiency standards.
CHALLENGE 4:
Imports
Because the EU imports 90% of its gas, its ‘methane footprint’ outside its borders is 3 to 8 times higher than that from domestic gas. Any plan that does not address imports is a lost opportunity.
THE SOLUTION: Leverage the EU’s market power, expand the regulation to fossil fuel exporters outside its borders and introduce a methane performance standard for imports.
The world is finally waking up to the dangers and potentials of methane, and the EU is in the best position to set an example.
— Flavia Sollazzo, Senior Director EU Energy Transition, Environmental Defense Fund Europe
In recent years, the urgency to address methane emissions has been gaining momentum around the world.
Some of the key milestones include:
NOVEMBER 2021
At the COP26 in Glasgow, 103 countries sign the Global Methane Pledge (GMP), which commits them to reduce methane emissions by at least 30% by 2030. Within the framework of the GMP, the EU, US and 11 other countries launch the GMP Energy Pathway which commits them to capture methane emissions from the energy sector.
NOVEMBER 2021
The USA proposes a Methane Emissions Reduction Plan that includes a levy on methane emissions from certain oil and gas facilities, as well as standards to cut methane emissions, including a superemitter response program.
DECEMBER 2021
The European Commission published a proposal for a new EU Methane Regulation in December 2021 with a comprehensive plan to curb methane emissions from all fossil fuels. Measures proposed include restrictions to venting and flaring; monitoring, reporting and verification; and mandatory Leak Detection and Repair (LDAR) routines.
FEBRUARY 2022
After Russia invades Ukraine, the EU starts to face an energy crisis. In May 2022, the Commission repackages its climate policy proposals into REPowerEU, which includes measures to diversify supplies and save energy. It recognises that robust action to prevent methane waste will support Europe's energy security as well as its climate goals.
NOVEMBER 2022
One year after the Global Methane Pledge was launched, 22 additional countries sign up. This includes some of the major fossil fuel-producing and exporting countries like Egypt, Oman, Trinidad and Tobago, Uzbekistan and Australia.
DECEMBER 2022
EU Energy Ministers adopt their position on the proposed EU Methane Regulation, weakening some areas of the original proposal.
MAY 2023
On May 9, the Plenary Session of the European Parliament adopts its position on the regulation. The European Parliament importantly calls for certain requirements, including MRV, to be imposed on imported gas.
JULY 2024
The EU regulation is published, setting strict new curbs on emissions from fossil fuel operations as well as tough standards for imports. The legislation enters into force in August 2024.
FAQs
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Emissions often follow skewed distributions, which means that a small number of high-emitting sources or sites have a disproportionate contribution to total emission. These are called super-emitters. They are rare and therefore hard to detect if surveys do not happen frequently enough. Carrying out frequent leak detection and repair (LDAR) allows to prevent these large leaks from emitting a substantial amount of methane into the atmosphere.
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Currently, emissions assessments are based on quantifications. As these quantifications are typically only estimates (often based on outdated or standardized emissions factors) and not all types of estimates are accurate, emissions tend to be highly underestimated in national inventories and industry reports. Using the term ‘quantification’ in the legislation means the EU will only have insight into estimated emissions rather than actual emissions and it will be impossible to track progress with integrity.
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The main goal here is for the EU not to be less ambitious than international practice. We don’t necessary push for the EU timeline to follow precisely the OGMP 2.0 one, but it should have a similar level of ambition.
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We are advocating for a performance standard that should apply to all gas consumed in the EU, both produced in the EU and imported. This is important as we would like to see emissions reduced across the supply chain. The standard could be an intensity level.
A clear target will enable authorities to properly enforce this provision and provide predictability for oil and gas companies.
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This standard has been self-imposed by industry already. There is precedent for the potential level of a performance standard in the 2025 methane intensity standard of ‘well below 0.2%’ set by the Oil and Gas Climate Initiative (OGCI). Leading companies in this group, including many headquartered in Europe, have committed to lower methane intensity to 0.2% by 2025 and begun deploying mitigation efforts.
EDF research shows that this threshold would be unlikely to lead to significant average increases in gas prices. Hence, this target is both ambitious and achievable.
The Inflation Reductions Act, passed in the US in August 2022, sets a methane cap of 0.2% for producing facilities, 0.05% for non-producing facilities and 0.11% for gas transmission facilities. We believe an intensity of 0.2% is a suitable standard, while keeping it consistent across all sectors of the value chain clarifies the text.
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Leaks are unpredictable. Conducting monthly checks conforms to the gold standard for leak detection and repair (LDAR) programs and would capture an additional 10% of methane emissions.
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OGI cameras should be the basis for leak detection and repair on which the legislation builds, as technology is both available, approved and already widely used across the oil and gas industry. However, as other technologies become available and withstand scientific rigor, they should also be considered as alternative LDAR approaches. Such potential technologies could include a combination of mobile approaches and should achieve equal or greater emission reductions than quarterly/monthly leak detection methods.
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Small leaks can very quickly become large leaks, and a large number of small leaks can add up to a significant amount of emissions. Any leak that is detected above a certain threshold – we advise the OGI detection limit of about 17g/h – should therefore be repaired.
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To tackle both climate and energy security, prohibition of venting should be strengthened and only allowed in case of emergency, when flaring risks the safety of operations or personnel.
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The high proportion of EU operators part of the OGMP provides evidence for the availability of solutions and for the possibility to produce granular and measurement-based estimates of the emissions occurring at their facilities. Such solutions need to be implemented by as many operators as possible to create reliable and accurate global estimates and tackle methane emissions more efficiently.