Finance Association, May 27 (Editor: Zhao Hao) On Monday (May 27) local time, EU regulations restricting methane emissions officially became legislation to require international energy suppliers to reduce emissions and emissions of this gas.

As an efficient fuel, natural gas is commonly used for combustion power generation and home heating, and methane is the main component of natural gas. Methane, on the other hand, is a potent greenhouse gas, second only to carbon dioxide. According to the UN, methane has contributed about 30% of global warming since pre-industrial times.

This means that if methane is leaked into the atmosphere from oil and gas pipelines or infrastructure, it will exacerbate global warming. In response, the EU's new regulations put forward new requirements for measuring, reporting and verifying methane emissions in the energy sector.

The new regulations require Europe's gas, oil and coal industries to measure, monitor, report and verify their methane emissions according to the highest monitoring standards, and take action to reduce emissions, the press release said.

The regulations also require EU fossil fuel operators to stop avoidable conventional combustion work and reduce combustion and emissions when required for emergencies, technical failures, or safety reasons.

Furthermore, since a large part of the fossil energy consumed by Europe comes from imports, regulations will gradually introduce stricter requirements to ensure that foreign exporters gradually fulfill the same monitoring, reporting and inspection obligations as EU operators.

In addition to this, the new regulations also require the establishment of a “global methane emission source monitoring tool” to provide information on the size, occurrence, and location of high methane emission sources within or outside the EU based on satellite data.

The European Commission will also establish a rapid warning mechanism for “super-emission” events (that is, events with extremely high methane emissions from facilities, equipment, or infrastructure) in order to take action to prevent or prevent such events.

In terms of specific requirements, starting in 2025, EU importers must report annual methane emissions data, including data on countries and companies that export to the EU. The information must include whether and how they measure, report, and reduce methane emissions.

From January 2027, new oil, gas and coal import contracts can only be signed if energy exporters assume the same monitoring, reporting and inspection obligations as EU producers.

Starting in 2030, the “methane intensity” of oil, gas, and coal imported into the EU market will need to be below an upper limit. This upper limit will be set by the European Commission in later secondary legislation.

The regulations require EU member state authorities to set effective, moderate, and dissuasive levels of punishment. Energy that fails to meet regulatory requirements can still enter the EU market, but only face a corresponding system of penalties, such as regular payment of fines.

According to data from the International Energy Agency (IEA) last year, total methane emissions from crude oil and natural gas imported from the EU reached 11 million tons, accounting for 13.4% of total methane emissions from the global oil and gas industry. Its methane emission limit standards for imported energy will have a certain impact on the global methane emission control process, oil and gas trade, etc.

According to media analysis, the new import regulations may hit major gas suppliers to the European Union such as the US, Algeria, and Russia. According to reports, Hungary voted against the vote, and the country has repeatedly stated that it will buy more gas from Russia.

At the 2021 UN Climate Conference, more than 100 countries pledged to reduce methane emissions by 30% from 2020 levels by 2030. Last year, at COP28, the US announced regulations aimed at reducing methane emissions from the country's oil and gas industry.