Changes from adopted text to adopted text

RemovedP9_TA(2023)0127

AddedP9_TA(2024)0190

Methane emissions reduction in the energy sector

Committee on the Environment, Public Health and Food Safety, Committee on Industry, Research and Energy

PE736.476

ChangedAmendments adopted by the European Parliament onlegislative 9resolution Mayof 202310 April 2024 on the proposal for a regulation of the European Parliament and of the Council on methane emissions reduction in the energy sector and amending Regulation (EU) 2019/942 (COM(2021)0805 – C9-0467/2021 – 2021/0423(COD))

(Ordinary legislative procedure: first reading)

RemovedRecital 1: (1) Methane is second only to carbon dioxide in its overall contribution to climate change and is responsible for approximately a third of current warming. The Intergovernmental Panel on Climate Change (IPCC) published in its Sixth Assessment Report the finding that deep reductions in anthropogenic methane emissions are needed by 2030 to stay below 1,5° C.

Change 1

AddedThe European Parliament,

RemovedRecital 2: (2) Although methane has a shorter average atmospheric residence time (10 to 12 years) than carbon dioxide (hundreds of years), its greenhouse effect on the climate is over 80 times1a more significant than carbon dioxide (CO2) over a 20-year period. The amount of methane in the atmosphere globally has risen sharply over the last decade. / 1a According to IPCC, on a100-year timescale, methane has 29,8 times greater global warming potential than carbon dioxide and is 82,5 times more potent on a 20-year timescale. IPCC Sixth Assessment Report (AR6, Table 7.15 at https://www.ipcc.ch/report/ar6/wg1/downloads/report/IPCC_AR6_WGI_FullReport.pdf)

Added– having regard to the Commission proposal to Parliament and the Council (COM(2021)0805),

RemovedRecital 2 a (new): (2a) Methane is a precursor gas for harmful ground-level ozone and contributes to air pollution, with ground-level ozone contributing to nearly 20 000 premature deaths every year1a. Tackling methane emissions will address not only environment and climate but also improve protection of the health in line with the One Health approach. / 1a European Environment Agency, Air quality in Europe – 2020 report, p. 7.

Added– having regard to Article 294(2) and Article 194(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90467/2021),

RemovedRecital 3 a (new): (3a) The resolution of the European Parliament of 21 October 2021 on an EU strategy to reduce methane emissions1a, calls on the Commission to analyse the implications for policies and measures of using a 20-year time horizon for global warming potential, as a complement to the 100-year timeframe currently used in accordance with the United Nations Framework Convention on Climate Change (UNFCCC) guidelines on greenhouse gas inventories. It further notes that more transparency about the short-term global warming implications of methane emissions would help to better inform Union climate policies and stresses that the use of such a complementary metric should by no means be used to delay necessary action to also drastically and rapidly reduce CO2 emissions. / 1a https://www.europarl.europa.eu/doceo/document/TA-9-2021-0436_EN.html - Spyraki report

Added– having regard to the opinion of the Committee on Legal Affairs on the proposed legal basis,

RemovedRecital 4: (4) According to the Union’s greenhouse gas (‘GHG’) inventories data, 53 % of anthropogenic methane emissions come from agriculture, 26 % from waste and the energy sector is estimated to be responsible for 19% of methane emissions within the Union. This does not include methane emissions linked to the Union’s fossil energy consumption which are occurring outside the Union. The Union is the world’s largest importer of fossil gas, thus the Union is an important driver of global methane emissions.

Added– having regard to Article 294(3) and Article 192(1) of the Treaty on the Functioning of the European Union,

RemovedRecital 5: (5) The European Green Deal combines a comprehensive set of mutually reinforcing measures and initiatives aimed at achieving climate neutrality in the Union by 2050. The European Green Deal Communication14 indicates that the decarbonisation of the gas sector will be facilitated, including by addressing the issue of energy-related methane emissions. The Commission adopted an EU strategy to reduce methane emissions (‘the Methane Strategy’) in October 2020 setting out measures to cut methane emissions in the EU, including in the energy sector, and internationally. In Regulation (EU) 2021/111915 (‘European Climate Law’), the Union has enshrined into legislation the target of economy-wide climate neutrality by 2050 and also established a binding Union domestic reduction commitment of net greenhouse gas emissions (emissions after deduction of removals) of at least 55% below 1990 levels by 2030. The Commission indicates in its accompanying impact assessment to this Regulation that 77% of total projected methane emissions over and above the baseline can be abated in 2030 at less than the sum of the social and environmental benefits15a This will contribute positively to limiting global warming to 1.5°C and would allow the Union to effectively take the lead in fighting methane emissions and strengthening energy security. / 15a https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SWD:2021:0459:FIN:EN:PDF (p. 67)

Added– having regard to the reasoned opinion submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Czech Chamber of Deputies, asserting that the draft legislative act does not comply with the principle of subsidiarity,

RemovedRecital 6: (6) Methane emissions come from a wide range of sectors, including agriculture, waste, waste water and energy. Methane emissions are included in the scope of the Union greenhouse gas reduction targets for 2030 set out in the European Climate Law and the binding national emission reduction targets under Regulation (EU) 2018/84216. However, there is currently no Union level legal framework setting out specific targets and measures covering all sectors for the reduction of anthropogenic methane emissions leading to a significant reduction of methane emissions in the Union by 2030, in line with the Paris Agreement. In addition, whilst Directive 2010/7517 on industrial emissions covers methane emissions from the refining of mineral oil and gas, it does not cover other activities in the energy sector.

Added– having regard to the opinion of the European Economic and Social Committee of 19 May 2022,

RemovedRecital 7: (7) In this context, this Regulation should apply to the reduction of methane emissions in oil and fossil gas upstream exploration and production, fossil gas gathering and processing, gas transmission, distribution, underground storage and liquefied fossil gas (LNG) terminals, as well as to petrochemicals, operating underground and surface coalmines, closed and abandoned underground coal mines.

Added– having regard to the opinion of the Committee of the Regions of 12 October 2022,

RemovedRecital 7 a (new): (7a) Given that upstream exploration and production, oil and fossil gas gathering and processing also yield naphtha and natural gas liquids for use in the petrochemical sector and result in methane emissions. The petrochemical sector should be subject to the measures on monitoring and reporting, leak detection and repair, and limits to venting and flaring similar to those in the energy sector.

Added– having regard to the provisional agreement approved by the committees responsible under Rule 74(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 15 March 2024 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

RemovedRecital 8: (8) Rules for accurate measurement, reporting and verification of methane emissions in the oil, gas and coal sectors, as well as for the abatement of those emissions, including through leak detection and repair surveys and restrictions on venting and flaring, while ensuring the protection of workers from methane emissions, should be addressed by an appropriate Union legal framework. The rules laid down in this Regulation should enhance transparency with regard to fossil energy imports into the Union and lead towards wider uptake of methane emissions mitigation solutions across the globe.

Added– having regard to Rules 59 and 40 of its Rules of Procedure,

RemovedRecital 9: (9) Compliance with the obligations under this Regulation is likely to require investments by regulated operators and the additional costs associated with such investments should be taken into account in tariff setting, subject to efficiency principles. According to the International Energy Agency (IEA), methane abatement measures are very cost-effective in the oil and gas sectors, particularly given the increased market prices for gas, and necessary investments for such measures would be limited, with a short payback period1a. The necessary costs should not result in a disproportionate financial burden on end users and consumers. Costs associated with investments in above zero net costs methane emission reduction measures should therefore be taken into account in tariff setting. Vulnerable households should be protected from disproportionate financial burdens of this Regulation. Appropriate measures taken by the operators to prevent and minimise methane emissions should be those in which the resulting societal impact of the emission is larger than the societal impact of the mitigation measure. / 1a https://www.iea.org/reports/global-methane-tracker-2023 - February 2023

Added– having regard to the joint deliberations of the Committee on the Environment, Public Health and Food Safety and the Committee on Industry, Research and Energy under Rule 58 of the Rules of Procedure;

RemovedRecital 10: (10) Each Member State should appoint at least one competent authority to oversee that operators effectively comply with the obligations laid down in this Regulation and should notify the Commission about such appointment and any changes thereof. The competent authorities appointed should be provided with sufficient financial and human resources by the Member State and should take all the necessary measures to ensure compliance with this Regulation. The competent authority should establish a contact point. Taking into account the cross-border character of energy sector operations and methane emissions, competent authorities should cooperate with each other and the Commission. In this context, the Commission and the competent authorities of the Member States should form together a network of public authorities applying this Regulation to foster close cooperation, with the necessary arrangements for exchanging information and best practices and allow for consultations.

Added– having regard to the letter from the Committee on Agriculture and Rural Development,

RemovedRecital 12: (12) In order to ensure the performance of their tasks, operators should provide the competent authorities with all assistance necessary. In addition, operators should take all the necessary actions identified by the competent authorities within the period determined by the competent authorities or any other period agreed with the competent authorities. Member States should regularly monitor the situation of the sector to detect any possible delay in the application of this Regulation due to a shortage of skilled workers and technologies.

Added– having regard to the report of the Committee on the Environment, Public Health and Food Safety and the Committee on Industry, Research and Energy (A9-0162/2023),

RemovedRecital 12 a (new): (12a) According to Regulation (EC) No 1367/2006 of the European Parliament and of the Council1a and Directive 2003/4/EC of the European Parliament and of the Council 1b emissions into the environment are environmental information. Any grounds for refusal of information by the authorities of the Member States or Union institutions, bodies, offices or agencies regards access to information are therefore to be interpreted in a restrictive way, taking into account the public interest served by disclosure and whether the information requested relates to emissions into the environment. / 1a Regulation (EC) No 1367/2006 of the European Parliament and of the Council of 6 September 2006 on the application of the provisions of the Aarhus Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters to Union institutions and bodies (OJ L 264, 25.9.2006, p. 13). / 1b Directive 2003/4/EC of the European Parliament and of the Council of 28 January 2003 on public access to environmental information and repealing Council Directive 90/313/EEC (OJ L 41, 14.2.2003, p. 26).

Added1. Adopts its position at first reading hereinafter set out;

RemovedRecital 13: (13) The main mechanism available to the competent authorities should be inspections, including examination of documentation and records, emissions measurements and site checks. Inspections should take place regularly, on the basis of an appraisal of the environmental risk conducted by the competent authorities. Already established controlling mechanisms available to the competent authorities should be taken into account. Best practice examples should be identified by the competent authorities. In addition, inspections should be carried out to investigate substantiated complaints and occurrences of non-compliance and to ensure that repairs or replacements of components are carried out in accordance with this Regulation. Where they identify a breach of the requirements of this Regulation, competent authorities should issue a notice of remedial actions to be taken by the operator. Competent authorities should keep records of the inspections and the relevant information should be made available in accordance with Directive 2003/4/EC of the European Parliament and of the Council19 .

Added2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

RemovedRecital 14: (14) In light of the proximity of some methane emission sources to urban or residential areas and their impact on health, environment and climate, natural or legal persons should be able to lodge duly substantiated complaints with the competent authorities of possible breaches of this Regulation. In this context, the European Justice Portal should enable the submission of complaints and provide access to competent authorities as well as information. Complainants should be kept informed of the procedure and decisions taken and should receive a final decision within a reasonable time of lodging the complaint.

Added3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

RemovedRecital 15: (15) A robust verification framework can improve the credibility of reported data. In addition, the level of detail and technical complexity of methane emissions measurements requires proper verification of methane emissions data reported by operators and mine operators. While self-verification is possible, third party verification ensures greater independence and transparency. In addition, it allows for a harmonized set of competences and level of expertise that may not be available to all public entities. Verifiers should be accredited by accreditation bodies in accordance with Regulation (EC) 765/2008 of the European Parliament and of the Council20 . Independent accredited verifiers should thus ensure that emissions reports prepared by operators and mine operators are correct and in compliance with the requirements set out in this Regulation. The verification activities should be conducted in line with current European or international standards and methodologies and taking due account of the nature of the operator's activities. The verifiers should review the data in the emissions reports to assess their reliability, credibility and accuracy against free and publicly available European or international standards developed by independent bodies and made applicable by the Commission. To ensure the accuracy of the data, verifiers should conduct announced and unannounced site checks. The Commission should thus be empowered to adopt delegated acts for the purpose of incorporat…

AddedP9_TC1-COD(2021)0423

RemovedRecital 16: (16) In performing their obligations and exercising their powers under this Regulation, verifiers, the competent authorities and the Commission should consider the information made available internationally, for example by the International Methane Emissions Observatory (IMEO), in particular with regards to methodologies for data aggregation and analysis and verification of methodologies and statistical processes employed by operators and mine operators to quantify their emissions reported data. The reference criteria in that respect may include the Oil and Gas Methane Partnership (OGMP) reporting framework, templates and guidance documents.

AddedPosition of the European Parliament adopted at first reading on 10 April 2024 with a view to the adoption of Regulation (EU) 2024/… of the European Parliament and of the Council on the reduction of methane emissions in the energy sector and amending Regulation (EU) 2019/942

RemovedRecital 17: (17) The IMEO was set up in October 2020 by the Union in partnership with the United Nations Environmental Programme, the Climate and Clean Air Coalition and the International Energy Agency, and launched at the G20 Summit in October 2021. The IMEO has been tasked with collecting, reconciling, verifying and publishing anthropogenic methane emissions data at a global level. The IMEO should play a role in identifying super emitters by way of an early detection and warning system.

Added(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2024/1787.)

RemovedRecital 25: (25) For quantification and reporting to be effective, oil and gas companies should be required to quantify and report methane emissions by source, and to make aggregated data available to Member States in order for Member States to be able to improve the accuracy of their inventories reporting. In addition, effective verification of company reported data is necessary and, to minimise the administrative burden for operators, reporting should be organised on an annual basis.

RemovedRecital 27: (27) The latest OGMP 2.0 framework has five levels of reporting. Source-level reporting begins at level 3, which is considered comparable with UNFCCC tier 3. It allows generic emission factors to be used. OGMP 2.0 level 4 reporting requires direct measurements of source-level methane emissions. It allows the use of specific emission factors. OGMP 2.0 level 5 reporting requires the addition of complementary site-level measurements. In addition, the OGMP 2.0 framework requires companies to report direct measurements of methane emissions within three years of joining OGMP 2.0 for operated assets and within five years for non-operated assets. Building on the approach taken in OGMP 2.0 with regard to source-level reporting and taking into account that a large number of Union companies had already signed up to OGMP 2.0 in 2021, Union operators should be required to deliver direct source-level measurements of their emissions within 12 months for operated assets and within 24 months for non-operating assets. In addition to source level quantification, site-level quantification allows assessment, verification and reconciliation of source-level estimates aggregated by site, thereby providing improved confidence in reported emissions. As in OGMP 2.0, this Regulation requires site-level measurements to reconcile source-level quantification.

RemovedRecital 30: (30) Flaring and venting of methane are intentional, resulting from processes or activities and devices designed for that purpose.

RemovedRecital 31 a (new): (31a) The member companies of Oil and Gas Climate Initiative (OGCI), including many with headquarters in Europe, have committed to lower methane intensity to 0,2% by 2025 and have begun deploying mitigation efforts. The OGCI member companies met their initial 2025 upstream methane intensity level already in 2020 and reached 0,17% in 2021. Several major European producers report to have reached a methane intensity for its upstream and midstream intensity level well-below the level. The Commission should therefore study the possibility of introducing an ambitious upstream methane emission intensity performance standard at below or equal to 0,2% and come up with a metric and provisions to implement the appropriate performance standard.

RemovedRecital 32: (32) More specifically, methane emissions from leaks are most commonly reduced by methane leak detection and repair (‘LDAR’) surveys, carried out to identify and then repair leaks or replacement of leaking components. Operators should therefore conduct at least periodic LDAR surveys and these should also cover surveying of components that vent methane, to check for malfunctioning equipment.

RemovedRecital 33: (33) For that purpose, a harmonised approach to ensure a level-playing field for all operators in the Union should be set up. That approach should include minimum requirements for LDAR surveys, while leaving an adequate degree of flexibility to Member States and operators. This is essential to allow innovation and the development of new components, LDAR technologies and methods, thus preventing the lock-in of technology, to the detriment of environmental protection. New technologies and detection methods continue to emerge and Member States should encourage innovation in this sector, so that the most leak-free, accurate and cost-effective components, LDAR technologies and methods can be adopted.

RemovedRecital 33 a (new): (33a) A harmonised approach benefits from standardised specifications to identify or detect methane releases using different instruments and technologies and which may be based or set by means of European standards or, in the absence of such standards, international standards. In the absence of suitable European standards, the Commission should consider requesting the relevant European standardisation organisations to adopt such standards in accordance with Regulation (EU) No 1025/2012 of the European Parliament and of the Council. The Commission should thus be empowered to adopt delegated acts for the purpose of establishing such specifications.

RemovedRecital 34: (34) Obligations on LDAR surveys should reflect a number of good practices. LDAR surveys should be primarily aimed at finding and eliminating as quickly as possible leaks by repair or replacement of the leaking component, rather than quantifying them; the frequency of surveys should be guided by the need to repair or replace components with a technology that is more leak tight; all leaks irrespective of size should be repaired, as small leaks can develop into larger ones; leak repairs should be followed by confirmation that they have been effective; in order to allow for future, more advanced components or methane emissions detecting technologies to be used, the minimum requirements for the device and methodology used for leak detection should be specified, based on their proven efficacy.

RemovedRecital 34 a (new): (34a) Many leaks today are due to old technologies and poor maintenance. Those technologies should be rapidly replaced by new innovative solutions. The leak detection and repair programme should therefore outline how the operator intends to map components which are at a high risk of methane leaks and set out how it intends to replace all of these components with new innovative technologies that ensure long-term protection against future leaks.

RemovedRecital 35: (35) Venting consists of the release of uncombusted methane into the atmosphere intentionally from processes or activities or devices designed to do it. In light of its potent GHG emission effect, venting should be banned except in the case of emergencies, malfunction or during certain specific events where some venting is unavoidable. To ensure that operators do not use equipment designed to vent, technology standards should be adopted that allow for the use of zero-emitting alternatives.

RemovedRecital 36: (36) Flaring is the controlled combustion of methane for the purpose of disposal in a device designed for said combustion. When carried out during the normal production of oil or fossil gas and as a result of insufficient facilities or amenable geology to re-inject methane, utilise it on-site, or dispatch it to a market, it is considered routine flaring. Routine flaring should be banned. Flaring should only be permissible when it is the only alternative to venting and where venting is not prohibited, consequently, where no other choice is available, flaring should always be preferred to venting. However, according to the IEA1a, globally, 143 bcm of fossil gas was flared in 2021 – roughly equivalent to the total volume of natural gas imported into Germany, France and the Netherlands. This resulted in the direct release of 270 Mt of CO2 and nearly 8 Mt of methane (240 Mt CO2-eq). Venting is more harmful to the environment than flaring as the released gas typically contains high-levels of methane, whereas flaring oxidises methane into carbon dioxide. According to the IEA, reducing flaring, venting and methane leaks would offer more immediate relief to gas markets than investing in new supply. The IEA1b estimated that nearly 210 billion cubic metres (bcm) of natural gas could be made available to gas markets by a global effort to eliminate non-emergency flaring and reduce methane emissions from oil and gas operations. / 1a https://www.iea.org/reports/flaring-emissions - September…

RemovedRecital 37: (37) Using flaring as an alternative to venting requires that flaring devices are efficient at combusting methane. For that reason, a combustion efficiency requirement should also be included for the cases in which flaring is admissible. Use of auto-igniter or continuous pilot burners, which give more reliable ignition as they are not affected by wind, should also be required.

RemovedRecital 40: (40) Methane emissions from inactive oil and gas wells pose public health, safety and environmental risks. Therefore, monitoring and reporting obligations should still apply and those wells and well sites should be reclaimed and remediated. In such cases, Member States should have a predominant role, in particular to establish an inventories and mitigation plans within clear deadlines.

RemovedRecital 44: (44) Once production is halted and a mine is closed or abandoned, it continues to release methane, referred to as abandoned mine methane (AMM). These emissions typically occur at well-defined point sources, such as ventilation shafts or pressure-relief vents. With increased climate ambition and shifting energy production to less carbon-intensive energy sources, AMM emissions are likely to increase in the Union. It is estimated that even 10 years after mining is ceased, methane from non-flooded mines continues to be emitted at levels attaining approximately 40% of emissions recorded at the time of closure25. Moreover, treatment of AMM remains fragmented due to different ownership and exploitation rights across the EU. Member States should thus establish inventories of closed and abandoned coal assets and, either them or the identified responsible party, should be required to install devices for measurement of methane emissions. Best practice examples should be identified and integrated in possible guidelines for the treatment of AMM.

RemovedRecital 48: (48) Underground mines are either thermal or coking coal mines. Thermal coal is used primarily as an energy source and coking coal is used as a fuel and as a reactant in the process of steelmaking. Both coking coal and thermal coal mines should be subject to measuring, reporting and verification and mitigation measures of methane emissions.