Executive summary

In April, the European Parliament provisionally agreed with EU members on a law to reduce methane emissions from the energy sector. Methane emissions are one of the largest contributors to global warming, after CO₂. The EU Parliament states that “methane emission reductions of 45 % by 2030, based on available targeted measures and additional measures in line with the UN Sustainable Development Goals, could avoid 0.3 °C of global warming by 2045." These kinds of deep reductions are essential to limit global heating to 1.5 °C according to the Intergovernmental Panel on Climate Change.

The law has been adopted by the EU Council and will enter into force 20 days after being published in the EU Official Journal, which is expected to happen in June 2024. At that time, the regulation will introduce several bureaucratic hurdles—for authorities introducing penalties and defining reporting hubs, for regulatory bodies developing various standards (incl. for monitoring technologies, quantification, and venting), and for operators who must develop, submit and report on LDAR plans, as well as provide regular source- and site-level quantification summaries to authorities.

To help prepare, we've unpacked these regulations in this report.

The regulation marks the culmination of more than two years of negotiation, aimed at reducing methane emissions in the fossil fuels and petrochemical industries. Its scope is broad, covering oil and natural gas exploration and production; natural gas extraction and processing; gas transmission, distribution, and storage, including LNG terminals; petrochemical operations; coal mines; and abandoned operations. Its reach even extends beyond the EU, applying to companies who import into the Union.

This report focuses on above-ground, onshore operations for crude oil and natural gas within the EU, although we do include a brief commentary on how these regulations might apply to importers.

At its heart are provisions for improved measurement, reporting and verification of energy sector methane emissions. This report breaks the regulations down according to articles relevant to methane emissions monitoring, covering articles on emissions monitoring and reporting, leak detection and repair, inactive wells, imported gas, and penalties for infringement. Accompanying each article, we have included a brief commentary on how our Nubo Sphere continuous monitoring solution will help operators comply with the regulations set out in these articles. By providing continuous monitoring, quick leak detection, and accurate quantification, Nubo Sphere meets the intent of this regulation: understanding methane emissions based on reliable data as well as identifying and repairing leaks as quickly as possible due to actionable emission event detection.