EU Methane Regulation: What Energy Companies and Importers Need to Know Now
After CO₂, methane is the second most important greenhouse gas – and over 20 years it is more than 80 times as potent. A large share of energy-sector emissions stems from leaking equipment, venting and flaring. This is exactly what Regulation (EU) 2024/1787 targets; it has applied directly in all Member States since 4 August 2024.
It covers oil and gas production operators, gas network, storage and LNG operators, coal mines – and, since 2025, importers of crude oil, natural gas and coal from third countries. Many operator obligations already apply: leak detection programmes, first emission reports and a far-reaching ban on venting and routine flaring since February 2026. From 2027, emission reports must additionally be backed by site-level measurements and verified by an independent verifier.
Five Methane Regulation Takeaways From Our Advisory Practice
Compliance Obligations – Legal Compliance
Obligations depend on the role and are phased in. A clear allocation per site and legal entity is essential – including the question of whether your company qualifies as an importer.
Monitoring and Measurement
Source-level quantification, site-level measurements by drone, vehicle or satellite from 2027, regular LDAR surveys and leak repairs within 5 and 30 days respectively.
Supplier Management – Supply Chain
Importers must collect supplier data and, from 1 January 2027, demonstrate equivalent monitoring and reporting standards. Methane intensity reporting follows from 2028, maximum values apply from 2030.
Risks and Opportunities – Risk Management
Fines – capped at 20% of annual turnover for breaches of reporting and importer obligations –, publicly available inspection and emission reports and a right of complaint for any person turn methane into a liability and reputation issue.
Documented Information – Document Management
Leak records must be kept for ten years; reports, repair schedules and justified exceptions must be traceable for authorities and verifiers at any time.
Politically in motion: The European Commission recommends that Member States refrain from penalising breaches of certain importer obligations in 2027–2029 (except fraud) – the obligations themselves remain – and announced at the end of September 2026 that it will propose postponing the import provisions by one year. Obligations for operators within the EU remain unaffected.
National differences also matter: in Austria, competent authorities and penalties are so far only set out in a draft amendment to the Gas Act (GWG) – not yet applicable law. In Germany, the Federal Environment Agency, BAFA and the federal states are responsible, while penalty rules are still pending.
If you operate an environmental management system under ISO 14001:2026, the Methane Regulation belongs in your legal register as a compliance obligation, and methane emissions should be assessed as a significant environmental aspect.
Whether – and to what extent – your organization needs to act depends on its role in the energy value chain. We are happy to support you with the applicability assessment, integration into your legal register and management system, and preparation for verification.
This article was created with AI assistance.