EU Methane Regulation, One year on

Methane (CH₄), the second most potent human-caused greenhouse gas after carbon dioxide (CO₂), is a powerful driver of climate change. The fossil fuel industry, particularly during extraction, processing, and transportation, is a major source of methane emissions. As one of the world's largest fossil fuel importers, the EU is working to reduce and prevent emissions and raise the level of environmental accountability. 

To this purpose, the EU has established since August 4, 2024, an EU-wide Methane Emissions Reduction Regulation implementing gradual obligations. The EU natural gas importers (NB: it also applies to oil and coal sectors), and indirectly, producers and exporters, will be required to report: 

• For deliveries from Aug. 2024: importers declaration to competent authorities - producer-level methane MRV (Measurement, Reporting & Verification) and mitigation information (Annex IX), or justification in case of failure. This information will be made publicly available by February 2026 in a Methane Transparency Database. 
• From  2027: demonstration that the methane emissions from their supply chains meet MRV standards equivalent to those in the EU. For existing contracts, an "all reasonable efforts" clause requires importers to justify their efforts to meet these standards to national authorities.
• By August 5th, 2028, and annually thereafter: reporting of the methane intensity (calculation methodology to be defined by EU by 2027) of production, including an "all reasonable efforts" clause for importers with contracts signed before August 4th, 2024.
• By August 5th, 2030, and annually thereafter: New contracts concluded or renewed after this date must demonstrate that methane intensity remains below a specific cap yet to be defined.

This regulation, part of a global EU strategy on GHG emissions reductions, supports more transparency, more accountability.

Emerging Progress

Since August 2024, the Commission launched a Methane Abatement Partnership Roadmap at COP29 (Nov 2024), promoting collaboration with global energy suppliers and encouraging adoption of OGMP 2.0 MRV standards  (Energy).

In parallel, a global monitoring satellite system, including tools like MethaneSAT and MARS, is now operational to detect high-volume events and feed into a public transparency database (Energy).

Several EU-based operators have also aligned with OGMP 2.0 standards, reflecting industry willingness to adopt better practices. Moreover, in anticipation of the future compliance requirements, Importers have initiated assessments of their suppliers MRV protocols to determine equivalence and compliance feasibility.

Stakeholder raising concerns regarding technical and legal uncertainties

While the Regulation represents a critical advance in climate policy, stakeholders have raised several operational and commercial concerns:

-Some Member States and trading partners, notably U.S. LNG exporters, have flagged potential disruptions due to administrative burdens and risk of non-compliance penalties (up to 20% of EU turnover). (Reuters).

-Importers report limited clarity on acceptable third-country MRV methodologies. Concerns persist regarding the legal enforceability of equivalence requirements, particularly in LNG supply contracts

EU Response

In June 2025’s Energy Council, the European Commission clarified it will support Member States and companies in applying the Regulation rather than reopening it (Environmental Defense Fund). In parallel, several energy ministers signaled interest in incorporating the Regulation into a broader regulatory simplification initiative to reduce administrative complexity and ensuring more efficient compliance pathways (Reuters).

Conclusion

One year after its entry into force, the EU Methane Regulation has laid the foundation to significantly reduce methane emissions from the energy sector. Its focus on both domestic compliance and supply chain accountability positions the EU as a global leader in methane mitigation.

Nevertheless, its successful implementation will require:

• Investment in MRV infrastructure, and verification 
• Enhanced cooperation with international partners
• Clear regulatory guidance to mitigate compliance and trade risks

The coming years will be critical in translating this legislative framework into measurable environmental outcomes while maintaining energy market stability.