We talk a lot about CO2 emissions reduction in the climate space. While CO2 is certainly the primary greenhouse gas driving climate change, it is not the only one. Methane is another GHG and its significantly more potent than CO2. It is estimated that over 100 years, methane impacts global temperatures by 30 times more than C02. While Methane has a shorter life cycle in our atmosphere, rising methane concentrations are a major problem. In 2023, the European Commission decided to take action on methane emissions by passing a reporting framework. This framework would require importers and producers of methane to disclose source- and site-level methane measurements. These rules were initially passed to help the EU hit its 2030 emissions targets, and were set to enter into force in 2027. However, the EU Parliament is looking to delay methane rules until 2031. Stating in a press release:
“Parliament agrees with the need to postpone these requirements, but is pushing for a longer, three-year postponement. Under Parliament’s proposal, importers of crude oil, natural gas and coal would have until 31 May 2031, to show that supply contracts concluded or renewed since 4 August 2024 cover only fuel subject to monitoring, reporting and verification measures equivalent to EU rules. The same new date would apply when importers report on their efforts to bring older contracts into line.”
The EU Parliament cites the situation in the Middle East as a primary driver of the delay. Global instability in fuel markets poses a strategic threat to the EU, and the delay represents an effort to allow the situation to normalize before introducing new regulations. The EU Council previously proposed a delay until August 2029, however, Parliament feels that companies need a longer timeframe. We’ll see which proposal wins out, but one thing is certain: the EU’s methane reporting rules will be delayed.
Our members can learn more about GHG emissions here.
