Methane Regulations, Pledges and Agreements to Know

Following carbon dioxide (CO2), methane is the second most important greenhouse gas contributor to climate change. At least 25% of today’s global warming is driven by methane from human actions. In today’s world, cutting methane emissions is the fastest opportunity to immediately slow the rate of global warming, especially as countries gear towards decarbonizing energy systems.

To achieve methane reductions consistent with global climate objectives, swift and significant action is needed. While industry efforts are important, government policy is to play the leading role. Regulations that aim to stop the avoidable release of methane into the atmosphere and minimize leaks will set the standard for energy companies and encourage accountability.

As the industry progresses towards a more sustainably efficient future, here’s what you need to know:

The Paris Agreement

Adopted by 196 Parties at the UN Climate Change Conference (COP21) in Paris, France, on 12 December 2015, the Paris Agreement is a historic, legally binding international treaty on climate change. The Agreement is geared towards a net-zero emissions world and sets long-term goals to:

• Reduce global greenhouse gas emissions hold global temperature increase to well below 2°C above pre-industrial levels and pursue efforts to limit it to 1.5°C above pre-industrial levels
• Assess collective progress towards achieving the purpose of the agreement -Provide financing to developing countries to mitigate climate change

The Global Methane Pledge

Led by the United States and the European Union, The Global Methane Pledge (GMP) was launched in November 2021 at the UN Climate Change Conference (COP26) to catalyze action to reduce emissions. The GMP now has 155 country participants, representing nearly 50% of global anthropogenic methane emissions. Achieving this goal is the fastest way to reduce near-term warming and is essential to keep a 1.5°C temperature limit within reach.

The U.S. Environmental Protection Agency (EPA)’s Final Rule

In December 2023, the Biden-Harris Administration announced a final rule to sharply reduce methane and other harmful pollutants from the oil and natural gas industry. This aims to prevent 1.5 billion metric tons of greenhouse gas emissions and promote the use of cutting-edge technologies to detect leaks and emissions.

Among other things, the EPA’s final rule will:

• Create a requirement to eliminate routine flaring produced by new oil wells
• Require comprehensive monitoring of methane leaks from well sites and compressor stations
• Give oil and gas companies flexibility to use low-cost technologies
• Establish standards that require reductions in emissions from high-emitting equipment like controllers, pumps, and storage tanks

EU Methane Regulation

On November 15 2023, the EU Commission welcomed a provisional agreement between the European Parliament and Council to reduce energy sector methane emissions in Europe and in our global supply chains. This first of its kind regulation will oblige fossil gas, oil and coal industry to properly measure, monitor, report and verify methane emissions according to the highest monitoring standards, and take action to reduce them.

The Regulation will:

• Require operators to regularly report to competent authorities about quantification and measurements of emissions at source level
• Oblige EU oil and gas companies to carry out regular surveys of their equipment to detect and repair methane leaks within specific deadlines
• Ban routine venting and flaring and restrict non-routine venting and flaring to unavoidable circumstances
• Establish a methane transparency database where data on methane emissions reported by importers and EU operators will be made available to the public
  

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