EU Methane Regulation and Natural Gas Emission Standards

This technical report discusses the EU Methane Regulation (EUMR), which was adopted in 2024 to regulate methane emissions from fossil fuel operations and imports. The regulation introduces an intensity standard for methane emissions from crude oil, natural gas, and coal production, set to take effect in 2030. The report details a study by the Environmental Defense Fund and SINTEF that assesses the impacts of a proposed 0.2% methane intensity standard for natural gas. Findings indicate that this standard could lead to a 40% reduction in upstream methane emissions from EU gas production and imports, translating to a 1.4% decrease in global methane emissions from natural gas. Additionally, the report outlines the minimal impact on EU wholesale gas prices, with only slight increases in Romania and Hungary due to their higher initial methane intensities. The report also describes the Global Gas Model used for the analysis, which covers over 100 countries and focuses on natural gas market dynamics.