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The Markets
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The Markets
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Oil & Gas

Europe behind on curbing methane emissions as energy security fears remain

EU countries risk falling behind counterparts on upping pressure on oil and gas firms to cut methane emissions, due energy supply fears

European Union politicians are split on whether tougher rules on detecting and fixing methane leaks should be implemented on firms supplying the bloc with oil and gas.

Ahead of a global pledge to cut methane emissions 30% by 2030, the EU, which is the world’s largest importer of oil and gas and therefore methane, has struggled to make leeway on reforms.

A vote due to be held in March could see the union place more pressure on oil and gas firms to find and prevent methane leaks within operations, but some ministers expect passing new legislation will be tough given supply fears remain.

“On the one hand, we have groups that are saying, don't be too quick" in making changes, but also “groups saying we shouldn't do it at all,” commented Jutta Paulas, European Greens party member.

The International Energy Agency warned on Tuesday that the global gas market remains “fragile” and still houses “uncertainties,” a year on from when the Ukraine War began, causing an upheaval to prices and hit to supply.

“Gas importing markets remain exposed to a tight supply environment and the impact of further cuts from Russia are cause for concern,” it said in a report, also referencing the “strong policy measures” taken by European countries to stem energy security fears.

The EU was among those that committed to minimising gas flaring and cutting CO2 and methane emissions at the COP27 climate summit, but is yet to join counterparts, such as Canada, in upping regulation on fossil fuel firms.

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