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American Mud Pumps

EU sets methane emission caps on oil and gas imports


In a significant move to combat climate change, the European Union (EU) has passed a groundbreaking law that mandates methane emission caps on oil and gas imports starting in 2030. 


This initiative aims to curb the adverse effects of methane, a major contributor to global warming, according to Reuters.


Methane, released from oil and gas infrastructures such as pipelines, is considered in the EU as the second largest cause of climate change after carbon dioxide. 


Considering the need to address this issue, EU member states have agreed to implement "maximum methane intensity values" for fossil fuels sold within Europe. 


This decision, finalized at a recent meeting in Brussels, received broad support, with only Hungary opposing the measure.


The new legislation is set to reshape global oil and gas practices by enforcing strict limits and imposing financial penalties on importers who fail to comply. 


Alessia Virone, director of EU affairs at the Clean Air Task Force, noted that the EU's position as the world's largest oil and gas importer gives it significant leverage to influence global methane reductions. 


The policy could cut methane emissions from the oil and gas sector by up to a third globally.


EU sets methane emission caps on oil and gas imports
EU sets methane emission caps on oil and gas imports


Who is affected by the law that sets limits on methane emissions from oil and gas imports?


This regulatory shift is expected to impact major suppliers including the United States, Algeria, and Russia, the latter having significantly reduced its gas deliveries to Europe since the Ukraine invasion in 2022. 


Norway, now Europe’s top pipeline gas provider, stands to benefit given its low methane intensity.


The Biden administration has expressed support for the EU’s methane regulations, aligning with its own efforts to reduce methane emissions. 


In 2023, the U.S. introduced regulations requiring oil companies to monitor and limit methane leaks, reflecting a growing international commitment to environmental stewardship.


Furthermore, the EU will enforce strict monitoring of European producers for methane leaks and largely prohibit flaring and venting—practices where oil and gas companies burn off or release excess methane. 


This not only aims to reduce emissions but also underscores the EU’s comprehensive approach to environmental protection.


Critics, however, including a spokesperson from the International Association of Oil and Gas Producers, warn that the EU must recognize existing methane standards in other jurisdictions to avoid jeopardizing energy supply security.


With this legislation, the EU solidifies its role as a leader in global environmental governance, promoting sustainable practices across the international oil and gas industry, while also setting a benchmark for others to follow.

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