The European Union has approved a new law that targets fossil fuel imports by imposing limits on methane emissions. Europe has agreed on a new law to limit methane emissions from oil and gas imports starting in 2030. Methane is a harmful greenhouse gas that contributes more to climate change than carbon dioxide, and it’s important to reduce its emissions. The new law sets maximum values for methane intensity for producers who want to export to Europe. The regulations will affect major gas suppliers like the U.S., Algeria, and Russia. Norway, whose supply has low methane intensity, has replaced Russia as Europe’s top gas supplier.
The EU has taken a significant step towards reducing greenhouse gas emissions by targeting the second most important greenhouse gas with strict measures,” stated Jutta Paulus, the EU Parliament’s co-lead negotiator. She added that the new law “will have significant global impact”. Paulus further explained that importers who purchase from non-compliant overseas suppliers will face financial penalties, which will effectively act as a fee for non-compliant fuels. The methane standard will be mandatory for supply contracts signed after the law’s approval, which is expected to happen later this year, after the final approval from the European Parliament and EU countries.
That step is usually just a formality that clears pre-agreed deals. The European Commission will define the specific limit for methane emissions that the EU will enforce. Methane often escapes into the atmosphere from leaky pipelines and infrastructure at oil and gas fields. The new regulation also introduces fresh requirements for the oil, gas, and coal sectors to measure, report, and verify methane emissions. The agreement obligates oil and gas producers in Europe to regularly inspect and repair leaks of the potent greenhouse gas in their operations. The deal also prohibits most cases of flaring and venting, which refers to the deliberate burning off or release of unwanted methane into the atmosphere, from either 2025 or 2027, depending on the type of infrastructure.
Reference – https://uk.investing.com/
Submitted by: Jagriti Tiwari , A legal intern at Legal Vidhya
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