Page 6 - FSUOGM Week 15 2021

FSUOGM COMMENTARY FSUOGM

European gas industry faces

pressure over methane emissions

New research shows European gas companies are ill-equipped to tackle their emissions

EUROPE MOST of Europe’s leading gas companies have
announced ambitions to produce net-zero emis-
WHAT: sions within three decades, but research sug-
The EU is discussing gests they could struggle to meet their targets on
mandatory methane reducing methane emissions. Meanwhile, inves-
emissions standards for tors are pushing the European Commission to
natural gas. introduce mandatory methane emissions stand-
ards for natural gas.
WHY: Methane is a greenhouse gas (GHG) with
The EU passed its 80 times more potency than CO2, making it
methane strategy last a priority for meeting the goals of the Paris
year, but critics say it Agreement. It can be accidentally released at
lacks teeth. gas fields, pipelines and other infrastructure,
and can flow through power turbines without
WHAT NEXT: being combusted – a problem known as meth-
Brussels is looking to ane slip. While gas companies have stressed how
introduce legislation on seriously they treat the problem, a new survey
methane standards later shows that these same firms struggle to definitely does not go far enough in enforcing rules on the
this year. measure their methane emissions. gas industry in order to deliver results. Instead,
German environmental groups Urgewald they argue it largely relies on companies making
and Deutsche Umwelthilfe polled 19 of voluntary commitments.
Europe’s biggest gas companies, and only seven The gas industry also faces investor pressure
responded, but without providing concrete fig- over its methane emissions. A group represent-
ures for their methane emissions. The research ing European investors managing €36 trillion in
could strengthen the case for the EU imposing assets, the Institutional Investors Group on Cli-
tougher legislation to ensure the gas industry mate Change (IIGCC), has renewed pressure on
can measure and reduce how much methane it the European Commission to introduce man-
releases. datory methane emissions standards for natural
“We’d expect the global players to be more gas, according to a letter dated March 31.
aware of their own climate impacts,” Constantin The EU is the world’s biggest gas importer,
Zerger, head of energy and climate protection at covering 80% of its demand with volumes from
Deutsche Umwelthilfe, commented. “Regula- abroad, following decades of decline in indige-
tory requirements will be needed to create trans- nous supply. Its largest supplier is Russia, where
parency and concentrate reduction measures.” satellites have identified large methane leaks
German energy group Uniper said it was along key gas pipelines. But there is no legisla-
pouring money into data quality and reporting, tion in the bloc to discourage the use of gas that
and aimed to obtain information on methane arrives from methane-leaking infrastructure
leakage through partners in its supply chain. beyond its borders.
It said it “fully supports the introduction of Brussels is looking to introduce such legisla-
robust monitoring and reporting standards for tion by the end of this year. The European Com-
methane,” the company told Bloomberg in mid- mission has said this legislation will require oil
March. Uniper is aspiring to reduce its methane and gas firms to monitor and report methane
emissions by 45% by 2025. emissions and take steps to avoid them, such as
Portuguese firm EDP - Energias de Portugal by repairing leaks. It has also confirmed it will
has only estimates rather than measurements of consider mandatory methane standards.
its emissions. A 12-week consultation on the rules began
The EU passed its methane strategy last year, last month. The IIGCC is calling for a minimum
and the hope is that it will encourage companies of 0.25% methane intensity to be required for
to invest in satellites and other technologies to all gas sold in the EU by 2025, and a mere 0.2%
improve leak detection. But critics says the plan where possible. ™

P6 www. NEWSBASE .com Week 15 14•April•2021