Impact of the New EU Methane Import Rule
The largest energy importer in the world - the European Union - has recently approved a groundbreaking law that will set first-ever methane rules for domestic and imported oil and gas.
The European Union will impose methane emissions limits on Europe's oil and gas imports from 2030, enforcing new measurement, reporting and verification (MRV) requirements on global suppliers.
Producing countries will need to adopt MRV regulations that are equivalent to, or stronger than the EU’s. This is an important rule that will influence market competitiveness and market access, with financial penalties as an additional consequence.
A summary brief by Center for Strategic and International Studies (CSIS) outlines key proposed timelines below.
This rule highlights the need for further standardization and harmonization amongst methane standards and initiatives globally. There is considerable uncertainty around the specifics of the information and calculation methodologies the suppliers must follow. However, MRV measures would be considered equivalent to EU rules if producers meet Oil and Gas Methane Partnership (OGMP 2.0) Level 5 standards and are also subject to independent third-party verification.
If you are a producer affected by these changes, it’s time to evaluate a strategy and approach for building a robust measurement-informed inventory. Reach out to Arolytics at info@arolytics.com to learn how we can support.
Source: https://csis-website-prod.s3.amazonaws.com/s3fs-public/2024-05/240503_Cahill_Methane_Rules.pdf?VersionId=1YTv1YAjnOBGVoYdLHv6ZA3ZjZgRsKBE
