Regulation (EU) 2024/1787 of the European Parliament and of the Council of 13 June 2024 on the reduction of methane emissions in the energy sector and amending Regulation (EU) 2019/942 (Text with EEA relevance)

REGULATION (EU) 2024/1787 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 13 June 2024 on the reduction of methane emissions in the energy sector and amending Regulation (EU) 2019/942 (Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 192(1) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee (1),

Having regard to the opinion of the Committee of the Regions (2),

Acting in accordance with the ordinary legislative procedure (3),

Whereas:

(1) Methane is second only to carbon dioxide (CO2) in its overall contribution to climate change and is responsible for approximately a third of current warming. The amount of methane in the atmosphere globally has risen sharply over the last decade.

(2) The Intergovernmental Panel on Climate Change (IPCC), created within the framework of the United Nations (UN), published in its Sixth Assessment Report the finding that deep reductions in anthropogenic methane emissions are needed by 2030 to limit global warming to 1,5 oC. That report shows that, although methane has a shorter average atmospheric residence time than CO2, 10 to 12 years compared to hundreds of years, its greenhouse effect over a 20-year period is over 80 times more significant than that of CO2. In particular, according to the IPCC, while methane has 29,8 times greater global warming potential than CO2 on a 100-year timescale, it is 82,5 times more potent on a 20-year timescale.

(3) It appears from the Air quality in Europe – 2020 report of the European Environment Agency that methane is a precursor gas for ground-level ozone and contributes to air pollution. Tackling methane emissions would address not only environment and climate but also improve protection of human health.

(4) According to recent estimates by the UN Environment Programme (UNEP) and the Climate and Clean Air Coalition (CCAC), methane emission reductions of 45 % by 2030, based on available targeted measures and additional measures in line with the UN Sustainable Development Goals, could avoid 0,3 oC of global warming by 2045.

(5) According to the International Energy Agency online data service World Energy Balances, the Union is the world’s largest importer of fossil energy, and as such, an important driver of global methane emissions.

(6) The European Green Deal combines a comprehensive set of mutually reinforcing measures and initiatives aimed at achieving climate neutrality in the Union at the latest by 2050. In its communication of 11 December 2019 on the European Green Deal, the Commission indicated that the decarbonisation of the gas sector would be facilitated, including by addressing the issue of energy-related methane emissions. In October 2020, the Commission adopted an EU strategy to reduce methane emissions (the ‘Methane Strategy’) setting out measures to cut methane emissions in the Union, including in the energy sector, and at global level. Regulation (EU) 2021/1119 of the European Parliament and of the Council (4) sets out the target for economy-wide climate neutrality at the latest by 2050 and establishes a binding Union domestic reduction target for net greenhouse gas emissions (emissions after deduction of removals) of at least 55 % compared to 1990 levels by 2030. It follows from the impact assessment accompanying the proposal for this Regulation that, under the assumptions of the preferred policy option for the methane legislative proposal combined with the assumptions of the ‘Fit for 55’ legislative package, 77 % of all methane emissions associated with oil, gas and coal projected for 2030 can be reduced cost effectively from a social and environmental perspective. That would contribute to limiting global warming to 1,5 oC and would allow the Union to effectively take the lead in fighting methane emissions and to strengthen its energy security.

(7) Methane emissions are included in the scope of the Union greenhouse gas reduction targets for 2030, set out in Regulation (EU) 2021/1119, and the binding national emission reduction targets under Regulation (EU) 2018/842 of the European Parliament and of the Council (5). However, there is currently no Union legal framework setting out specific measures for the reduction of anthropogenic methane emissions in the energy sector. In addition, whilst Directive 2010/75/EU of the European Parliament and of the Council (6) covers methane emissions from the refining of mineral oil and gas, it does not cover methane emissions from other activities in the energy sector.

(8) In this context, this Regulation should apply to the reduction of methane emissions in oil and fossil gas upstream exploration and production, in inactive wells, temporarily plugged wells and permanently plugged and abandoned wells, in fossil gas gathering and processing, in gas transmission, distribution and underground storage, as well as in liquefied natural gas (LNG) facilities. This Regulation should also apply to active underground coal mines and surface coal mines, and closed or abandoned underground coal mines.

(9) Rules for accurate measurement, monitoring, reporting and verification of methane emissions in the oil, gas and coal sectors, as well as for the reduction of those emissions, including through leak detection and repair (LDAR) surveys and restrictions on venting and flaring, while ensuring the protection of workers from methane emissions, should be addressed by an appropriate Union legal framework. The rules laid down in this Regulation should enhance transparency with regard to imports of fossil energy into the Union and contribute towards the wider uptake of methane emission mitigation solutions across the globe. A 20-year and a 100-year time horizon for global warming potential should be used.

(10) Compliance with the obligations under this Regulation is likely to require investments by regulated entities, and the costs associated with such investments should be taken into account in tariff setting, subject to efficiency principles. The necessary costs should not result in a disproportionate financial burden on end users and consumers.

(11) Each Member State should appoint at least one competent authority to oversee the effective compliance by operators, undertakings, mine operators and importers with the obligations laid down in this Regulation and should notify the Commission about such appointment and any changes thereto. Those competent authorities should be provided with sufficient financial and human resources and should take all the necessary measures to ensure compliance with this Regulation in accordance with the tasks specifically attributed to them. The competent authorities should establish a contact point. Taking into account the cross-border character of energy sector operations and methane emissions, the competent authorities should cooperate with each other and with the Commission. In that context, the Commission and the competent authorities should form together a network of public authorities applying this Regulation to foster close cooperation, with the necessary arrangements for exchanging information and best practices, and to allow for consultations.

(12) In order to ensure a smooth and effective implementation of this Regulation, the Commission should support Member States through the Technical Support Instrument established by Regulation (EU) 2021/240 of the European Parliament and of the Council (7) providing tailor-made technical expertise to design and implement reforms, including reforms promoting the reduction of methane emissions in the energy sector. That technical support could, for example, involve strengthening administrative capacity, harmonising the legislative frameworks and sharing relevant best practices.

(13) In order to ensure the performance of the tasks of the competent authorities, operators, undertakings, mine operators and importers should provide those authorities with all necessary assistance. In addition, operators, undertakings, mine operators and importers should take all the necessary actions identified by the competent authorities within the period determined by the competent authorities or any other period agreed with the competent authorities.

(14) One of the main mechanisms available to the competent authorities should be inspections, including examination of documentation and records, emissions measurements and site checks. Inspections should take place regularly, on the basis of an appraisal of the risks, such as environmental risks, associated with each site, carried out by the competent authorities. The competent authorities should take into account the established control mechanisms and the best practices available to them. In addition, inspections should be carried out to investigate substantiated complaints and occurrences of non-compliance and to ensure that repairs or replacements of components and mitigation measures are carried out in accordance with this Regulation, as well as to regularly check compliance of importers with this Regulation. Where the competent authorities identify a serious breach of this Regulation, they should issue a notice of remedial actions to be taken by the operator, undertaking, mine operator or importer. Alternatively, the competent authorities should be able to decide to instruct the operator, undertaking, mine operator or importer to submit for their approval a set of remedial actions to address the breach. Competent authorities should keep records of the inspections, and the relevant information should be made publicly available in accordance with Directive 2003/4/EC of the European Parliament and of the Council (8).

(15) In order to determine the seriousness of an infringement of this Regulation, the competent authorities should consider the environmental damage and the impact on human safety and health, as well as the likelihood of the infringement to affect, to a significant degree, data reliability and robustness in the monitoring and reporting obligations under this Regulation.

(16) In light of the proximity of some methane emission sources to urban or residential areas and their impact on health, environment and climate, natural or legal persons should be able to lodge duly substantiated complaints with the competent authorities on possible infringements of this Regulation. It should be possible in that context to use the European e-Justice Portal to host relevant information, as made available by Member States, in particular the contact details of the competent authorities, the most important steps of the complaint procedure, as well as the rights and basic rules to follow. The competent authorities should keep complainants informed of the procedure and decisions taken and complainants should receive a final decision within a reasonable time after lodging the complaint.

(17) A robust verification framework improves the credibility of reported data. In addition, the level of detail and technical complexity of methane emission measurements requires proper verification of methane emission data reported by operators, undertakings, mine operators and importers. While self-verification is possible, third party verification ensures greater independence and transparency. In addition, it allows for a harmonised set of competences and level of expertise that may not be available to all public entities. Verifiers should be accredited by accreditation bodies in accordance with Regulation (EC) No 765/2008 of the European Parliament and of the Council (9) or otherwise authorised in a manner comparable to Regulation (EC) No 765/2008. Independent verifiers should thus ensure that emissions reports prepared by operators, undertakings, mine operators and importers are accurate and in compliance with the requirements set out in this Regulation. The verification activities should be aligned with the relevant European or other international standards and methodologies for verifiers and should take due account of the nature of the verified activities. The verifiers should review the data in the emissions reports to assess the reliability, credibility and accuracy of the data. To ensure the accuracy of the data, verifiers should, where relevant, carry out announced and unannounced site checks. Verifiers should be separate from competent authorities and should be independent from the operators, undertakings, mine operators and importers, who should provide them with all assistance necessary to enable or facilitate the verification activities, in particular as regards access to the sites and the presentation of documentation or records.

(18) In performing their tasks and exercising their powers under this Regulation, the Commission, competent authorities and verifiers should consider the information made available internationally, for example by the International Methane Emissions Observatory (IMEO), in particular with regard to methodologies for data aggregation and analysis and verification of methodologies and statistical processes employed by operators, undertakings, mine operators and importers to quantify data in their emissions reports. The reference criteria in that respect can include the Oil and Gas Methane Partnership (OGMP) reporting framework, technical guidance documents and reporting templates.

(19) The IMEO was set up in October 2020 by the Union in partnership with the UNEP, the CCAC and the International Energy Agency, and presented at the G20 Summit in October 2021. The IMEO has been tasked with collecting, reconciling, verifying and publishing data on anthropogenic methane emissions at a global level. The IMEO could play a role in identifying super-emitters through an early detection and warning system.

(20) As party to the United Nations Framework Convention on Climate Change (UNFCCC) (10) and the Paris Agreement adopted under the UNFCCC (11) (the ‘Paris Agreement’), the Union is required to provide annually an inventory report of anthropogenic greenhouse gas emissions constituting an aggregate of the Member States national greenhouse gas inventories, prepared using good practice methodologies accepted by the IPCC.

(21) Regulation (EU) 2018/1999 of the European Parliament and of the Council (12) requires Member States to report greenhouse gas inventory data and their national projections to the Commission. Pursuant to that Regulation, reporting is to be undertaken using UNFCCC reporting guidelines, and is often based on default emission factors rather than direct source-level measurements, implying uncertainties on the origin, frequency and magnitude of emissions.

(22) Country data reported pursuant to UNFCCC reporting provisions is submitted to the UNFCCC secretariat in accordance with different tiers of reporting, in line with IPCC guidelines. In that context, the IPCC generally suggests using higher tier methods for those emission sources which have a significant influence on a country’s total greenhouse gas inventory in terms of absolute level, trend or uncertainty.

(23) A tier represents a level of methodological complexity. Three tiers are available. Tier 1 methods typically use IPCC default emission factors and require the most basic, and least disaggregated, activity data. Higher tiers usually utilise more elaborate methods and source-, technology-, region- or country-specific emission factors, which are often based on measurements, and normally require more highly disaggregated activity data. Specifically, tier 2 requires the use of country-specific, instead of default, emission factors, while tier 3 requires plant-by-plant data or measurements and comprises the application of a rigorous bottom-up assessment by source type at the individual facility level. The IPCC stated in its 2019 Refinement to the IPCC 2006 guidelines for national greenhouse gas inventories that progressing from tier 1 to tier 3 represents an increase in the certainty of measurements of methane-related emissions.

(24) Member States have different practices regarding the tier level at which they report their energy-related methane emissions to the UNFCCC secretariat. Reporting at tier 2 for large emission sources is in line with IPCC reporting guidelines, as tier 2 is considered a higher tier method. Reporting at tier 1, the lowest level, is still very common in several Member States for methane emissions from coal, gas and oil. As a result, estimation methodologies and reporting of energy-related methane emissions vary across Member States.

(25) Currently, voluntary industry-led initiatives remain the principal course of action for methane emission quantification and mitigation in many countries. A key industry-led initiative in the energy sector is the OGMP, a voluntary initiative on measuring and reporting methane emissions, created in 2014 by UNEP and CCAC, on whose board the Commission is represented. The OGMP focuses on establishing best practices to improve the availability of global information on methane emission quantification and management and to drive mitigation actions to reduce methane emissions. The OGMP’s work on developing standards and methodologies involves governments, civil society and business. To date, over 115 companies, with assets in more than 60 countries on five continents, representing over 35 % of the world’s oil and gas production and over 70 % of LNG flows have become members of UNEP’s OGMP 2.0. The OGMP 2.0 framework is the latest iteration of a dynamic methane emissions standard and can provide a suitable basis for methane emissions standards, based on sound scientific standards.

(26) Against that background, it is necessary to improve the measurement of methane emissions and the quality of the reported data, including on the main sources of methane emissions associated with energy produced and consumed within the Union. Moreover, the availability of source-level data and the robust quantification of methane emissions should be ensured, thereby increasing the reliability of reporting as well as the scope for appropriate mitigation measures.

(27) For quantification and reporting to be effective, operators and undertakings should be required to quantify and report methane emissions by source, and to make aggregated data available to Member States in order for Member States to be able to improve the accuracy of their inventories and reports. In addition, effective verification of the reported data is necessary. In order to minimise the administrative burden for operators and undertakings, they should report on an annual basis.

(28) This Regulation, which builds on the relevant parts of the OGMP 2.0 framework, contributes towards the collection of reliable and robust data that would form a sufficient basis for monitoring methane emissions and, where necessary, provides for additional action to further curb methane emissions.

(29) The OGMP 2.0 framework has five levels of reporting. Source-level reporting begins at level 3, which is considered comparable with UNFCCC tier 3. It allows the use of generic emission factors. OGMP 2.0 level 4 reporting requires direct measurements of source-level methane emissions and allows the use of specific emission factors. OGMP 2.0 level 5 reporting requires complementary site-level measurements in addition to source-level quantification of methane emissions. In addition, the OGMP 2.0 framework requires companies to report direct measurements of methane emissions within 3 years of joining OGMP 2.0 for operated assets and within 5 years for non-operated assets. The deadlines within which operators and undertakings are to submit reports required under this Regulation should be set, building on the approach taken by OGMP 2.0 with regard to source-level reporting and taking into account that a large number of Union companies have already joined OGMP 2.0. In addition to source-level quantification, site-level quantification allows assessment, verification and reconciliation of source-level estimates aggregated by site, thereby providing improved confidence in reported emissions. Similar to the OGMP 2.0 framework, site-level measurements to reconcile source-level quantification should be required.

(30) According to data from the Union greenhouse gas inventory, which is based on national greenhouse gas inventories reported in accordance with Regulation (EU) 2018/1999, more than half of all direct methane emissions in the energy sector is due to unintentional release of methane into the atmosphere. In the case of oil and gas, such unintentional methane emissions represent the largest share of methane emissions.

(31) Unintentional leaks of methane into the atmosphere can occur during drilling and extraction, as well as during processing, storage, transmission and distribution to end-use consumers. Such leaks can also occur in inactive wells, temporarily plugged wells or permanently plugged and abandoned wells. Some methane emissions can result from imperfections in, or ordinary wear and tear of, technical components such as joints, flanges and valves, or from damaged components, for example in the case of accidents. Corrosion can also cause leaks from the walls of pressurised equipment.

(32) In order to reduce methane emissions, operators should take all appropriate mitigation measures to minimise methane emissions in their operations.

(33) More specifically, methane emissions from leaks are most commonly reduced by LDAR surveys, carried out first to identify leaks and then to repair leaks or replace leaking components. Operators should therefore carry out periodic LDAR surveys, including of components that vent methane, to check for malfunctioning equipment.

(34) For that purpose, a harmonised approach to ensure a level-playing field for all operators in the Union should be set up. That approach should include minimum requirements for LDAR surveys, while leaving an adequate degree of flexibility to Member States and operators. That flexibility is essential to allow innovation and the development of new components, new LDAR technologies and new detection methods, thus preventing, to the detriment of environmental protection, the lock-in of technology. New LDAR technologies and new detection methods continue to emerge and Member States should encourage innovation in this sector, so that the least emitting, and also accurate and cost-effective components, LDAR technologies and detection methods can be adopted.

(35) Obligations regarding LDAR surveys should reflect good practices. LDAR surveys should be primarily aimed at finding and eliminating as quickly as possible leaks by repair or replacement of the leaking component, rather than quantifying them, and those areas with a higher risk of leaks should be checked more frequently. The determination of the frequency of LDAR surveys and the decision to repair or replace a component should be guided not only by the need to repair or replace components from which methane is escaping above the methane emission threshold but also by operational considerations, taking into account risks to safety. Thus, where a higher risk to safety or higher risk of methane emissions is identified, the competent authorities should be allowed to recommend more frequent LDAR surveys for the relevant components or the replacement of components with technology that is less prone to leaks. All leaks, irrespective of their size, should be surveyed and checked, as small leaks can develop into larger ones. Leak repairs should be followed by confirmation that they have been effective. In order to allow for new or more advanced components or technologies for the detection of methane emissions to be used, the size of methane loss at or above which repair is required should be specified, while leaving to the operators the choice of detection device. Where appropriate, it should be possible to use detection technologies, such as continuous monitoring, as part of LDAR surveys as long as they fulfil the requirements for advanced detection technologies of this Regulation. Best performing operators producing or processing oil or natural gas should be able to apply different LDAR survey frequencies, subject to the fulfilment of the conditions in this Regulation and the approval of the competent authorities.

(36) LDAR surveys should be undertaken, using appropriate available technologies and detection techniques to identify leaks: as close as possible to each individual potential emission source for aboveground components and components above the sea level; at the interface between ground and atmosphere as a first step and, if a potential leak is detected, as close as possible to the emission source as a second step for underground components; and applying the best detection techniques that are commercially available for offshore components below the sea level or below the seabed.

(37) As regards underground components, LDAR surveys are generally undertaken using a two-step process. The first step consists in undertaking a first leak detection and determines whether to dig the ground or undertake bar-hole drilling if the pipeline is directly accessible. Operators dig or drill the ground if the leak is at or above the first leak detection threshold. The second step consists in undertaking a second leak detection and determines whether to repair the leak. Operators repair the leak if it is at or above the second leak detection threshold.

(38) Minimum detection limits serve to ensure that the detection devices are sensitive enough to detect leaks as required under this Regulation. Those minimum detection limits as well as detection techniques to be used should be determined by the Commission, taking into account the different types of components and LDAR surveys, for all categories of components, along with the thresholds applicable to the first step of the LDAR surveys for underground components.

(39) Repair or replacement should take place immediately after detection of a leak at or above the threshold, specified in this Regulation, or as soon as possible thereafter. While it could be necessary to consider exceptional safety, administrative and technical aspects, evidence should be provided to justify any delays in repair or replacement. Repairs or replacements should use the best technologies that are commercially available and that provide long-term protection against future leakage.

(40) Small connected systems as defined in Directive (EU) 2019/944 of the European Parliament and of the Council (13) can face security of supply and grid stability issues in the case of a system shutdown. Therefore, to avoid such risks for the security of supply, repair or replacement works should be carried out during scheduled system shutdowns.

(41) In light of its potent greenhouse gas emission effect, venting should be prohibited except in the case of emergencies or malfunction, or during certain specific events where some venting is unavoidable and strictly necessary. To ensure that operators do not use equipment designed to vent, technology standards should be adopted that allow for the use of lower emitting alternatives.

(42) Flaring is considered as routine flaring when it is carried out during the normal production of oil, gas and coal, in the absence of adequate facilities or amenable geology to re-inject the gas produced, utilise it on-site or dispatch it to a market. Routine flaring should be prohibited. Flaring should be allowed when it is the only alternative to venting and where venting is not prohibited. The elimination of routine flaring would also increase the availability of natural gas for gas markets. Venting is more harmful to the environment than flaring as the gas released typically contains high levels of methane, whereas flaring oxidises methane into CO2 which has a lower global warming potential. Therefore, where no other choice is available, flaring should be preferred to venting.

(43) Using flaring as an alternative to venting requires that flaring devices are efficient at combusting methane. For that reason, a combustion efficiency requirement should also be included for the cases in which flaring is allowed and flaring devices with a destruction and removal efficiency by design level below 99 % should be phased out. The use of auto-igniters or continuous pilot burners, which give more reliable ignition as they are not affected by wind, should also be required.

(44) Re-injection or utilisation on-site of methane, or dispatch of methane to a market should always be preferable to venting or flaring. Operators that vent should provide proof to the competent authorities that re-injection, utilisation on-site, storage for later use, dispatch of methane to a market or flaring was not possible and operators that flare should provide proof to the competent authorities that re-injection, utilisation on-site, storage for later use or dispatch of the methane to a market was not possible.

(45) Operators should notify major venting events and flaring events without delay to the competent authorities and submit to those authorities annually more comprehensive reports on all venting events and flaring events. They should also ensure that venting and flaring equipment and devices comply with the standards laid down in Union law.

(46) Methane emissions from inactive wells, temporarily plugged wells and permanently plugged and abandoned wells pose health, safety and environmental risks. Therefore, monitoring, including quantification and, where pressure monitoring equipment exists, pressure monitoring, and reporting obligations should still apply and those wells and well sites should be permanently plugged, reclaimed and remediated, as applicable. In such cases, Member States should have a predominant role, in particular to establish inventories and, where no party responsible can be identified, to report methane emissions and establish mitigation plans within clear deadlines.

(47) In the case of permanently plugged and abandoned wells, adequate documentation demonstrating that there are no methane emissions should be provided for all wells that have been permanently plugged and abandoned in the 30 years preceding and on or after the date of entry into force of this Regulation and, where such documentation is available, for wells permanently plugged and abandoned more than 30 years preceding the date of entry into force of this Regulation. Such documentation should include at least emission factor based or sample-based quantification or reliable evidence of permanent subsurface isolation in accordance with ISO 16530-1:2017, the applicable international standard on well integrity for petroleum and natural gas industries.

(48) Where the competent authorities are provided with reliable evidence of material amounts of methane emissions in an offshore inactive well, in a temporarily plugged well or in a permanently plugged and abandoned well, as the case may be, that has been confirmed by an independent third party, the competent authorities should decide on the application of the obligations for temporarily plugged wells with respect to that well.

(49) The number of inactive wells, temporarily plugged wells and permanently plugged and abandoned wells on the territory of the Member States varies significantly and some Member States have a very high number of such wells on their territories. Such Member States should be allowed to apply a more gradual approach to fulfilling obligations regarding the establishment of an inventory of those wells to ensure the proportionality of the costs and administrative burden associated with that inventory.

(50) Since the likelihood of methane leakage from offshore wells to reach the surface depends on several factors and tends to decrease with water depth and that the resources necessary to survey and intervene in offshore wells increase as water depth and distance from shore increase, exemptions from certain obligations under this Regulation should be considered for offshore wells located at greater water depth, if robust evidence can be provided that the impact on the climate of potential methane emissions from those wells is highly likely to be negligible.

(51) Union greenhouse gas inventory data show that methane emissions from coal mines are the biggest single source of methane emissions in the Union’s energy sector. In 2019, direct emissions from the coal sector represented 31 % of all methane emissions, almost equal to the percentage of direct methane emissions from oil and fossil gas combined, namely 33 %.

(52) Currently, there is no Union-wide specific legislation limiting methane emissions from the coal sector, despite the availability of a wide array of mitigation technologies. There is no Union or international coal-specific monitoring, reporting and verification standard. In the Union, reporting of methane emissions from the coal industry is part of the greenhouse gas emission reporting by Member States. Data from underground coal mines is also included in the European Pollutant Release and Transfer Register established by Regulation (EC) No 166/2006 of the European Parliament and of the Council (14).

(53) Recent studies show that methane emissions are primarily linked to underground mining activities, in active, closed and abandoned coal mines. In active underground coal mines, methane concentration in the air is continuously controlled as it constitutes a health and safety hazard. In the case of underground coal mines, the vast majority of methane emissions occur through ventilation and drainage or degasification systems, which represent the two main ways of lowering methane concentrations in a coal mine’s airways.

(54) Once production has ceased and a coal mine is closed or abandoned, it continues to release methane, referred to as ‘abandoned mine methane’ (AMM). Such methane emissions typically occur at well defined source points, such as ventilation shafts or pressure-relief vents. With increased climate ambition and shifting energy production to less carbon-intensive energy sources, AMM emissions are likely to increase in the Union. It is estimated that even 10 years after mining has ceased, methane from non-flooded coal mines continues to be emitted at levels attaining approximately 40 % of those recorded at the time of closure. Moreover, treatment of AMM remains fragmented due to different ownership and exploitation rights and obligations across the Union. Member States should therefore establish inventories of closed underground coal mines and abandoned underground coal mines where operations have ceased after 3 August 1954 and the identified party responsible should be required to install devices for the measurement of methane emissions.

(55) Active surface coal mines in the Union produce lignite and emit less methane than underground coal mines. Lignite coal mines in the Union are predominantly opencast surface coal mines, with the exception of one lignite underground coal mine in one Member State. According to the Union greenhouse gas inventory, in 2019, active surface coal mines emitted 166 kilotonnes of methane compared to 828 kilotonnes of methane from underground coal mines. Measurement of methane emissions from surface coal mines is challenging due to the tendency of methane to diffuse over a wide area. Therefore, and despite the availability of adequate technology, methane emissions from surface coal mines are rarely measured. Methane emissions from surface coal mines can be derived using basin-specific coal emission factors and, with greater precision, using mine- or deposit-specific emission factors, since coal basins have deposits with different methane-bearing capacity. Emission factors can be derived from measuring gas content of the seams sampled from exploration borehole cores. Mine operators should therefore quantify methane emissions in surface coal mines using such emission factors.

(56) Methane emissions from fully flooded underground coal mines tend to decrease significantly over time as the hydrogeological conditions stabilise following the closure of the coal mine and the completion of the flooding process. It should therefore be possible to exempt such coal mines from quantification obligations, where duly justified.

(57) Mine operators should perform continuous measurement and quantification of methane emissions from ventilation shafts in underground coal mines and continuous measurement of vented and flared methane in drainage stations. They should use specific emission factors as regards surface coal mines. They should report that data to the competent authorities.

(58) Mitigation of methane emissions can be best achieved in active and closed underground coal mines or abandoned underground coal mines. Effective mitigation of methane emissions from active surface coal mines and closed or abandoned surface coal mines is currently limited by technology. However, in order to support research and development in mitigation technologies for such methane emissions in the future, there should be effective and detailed monitoring, reporting and verification of the scale of those methane emissions.

(59) Active underground coal mines are either thermal or coking coal mines. Thermal coal is used primarily as an energy source and coking coal is used as a fuel and as a reactant in the process of steelmaking. Both thermal and coking coal mines should be subject to measuring, reporting and verification and mitigation measures with respect to methane emissions. Mitigation measures should be implemented through a phase-out of venting and flaring. Mitigation measures should not lead to the deterioration of the safety of workers.

(60) For active underground coal mines, mitigation measures should be implemented through a phase-out of flaring devices with a destruction and removal efficiency by design level below 99 %. While the flooding of closed or abandoned underground coal mines can prevent methane emissions, it is not systematically done and poses environmental risks. In those coal mines, flaring devices with a destruction and removal efficiency by design level below 99 % should also be phased out. As geological constraints and environmental considerations prevent a one-size-fits-all approach with respect to abandoned underground coal mines, Member States should establish their own mitigation plan, taking into consideration those constraints and the technical feasibility of AMM mitigation.

(61) In order to reduce methane emissions from active coal mines, Member States should be allowed to introduce systems of incentives for the reduction of methane emissions, subject to applicable State aid rules. Those systems could in particular incentivise investments into methane capture and injection to the grid and the reduction of methane emissions from ventilation shafts and from flaring. Member States should be allowed to introduce dedicated systems of fees and charges to facilitate investments into the reduction of methane emissions, inter alia, as part of State aid programmes aimed at the decommissioning of coal production capacities, subject to applicable State aid rules.

(62) Existing best mitigation practices to reduce methane emissions should be allowed in closed or abandoned coal mines, such as development of geothermal and heat storage projects in flooded coal mines, hydropower applications in non-flooded coal mines, capturing methane emissions by degassing, use of safety-relevant degassing devices, use of mine gas for energy production or impoundment of mine water and other possible uses.

(63) The Union is dependent on imports for 70 % of its hard coal consumption, 97 % of its oil consumption and 90 % of its fossil gas consumption. While the share of global anthropogenic methane emissions emitted in Europe is estimated to be only around 6 %, the consumption of, and import dependency on, fossil fuels contribute significantly to methane emissions of the Union.

(64) Global warming effects caused by methane emissions are cross-border. Although some fossil energy producing third countries are beginning to act domestically to reduce methane emissions in their energy sector, many third-country producers and exporters are not subject to any regulations in their respective domestic market. They need clear incentives to reduce their methane emissions. Transparent information on methane emissions associated with the production of crude oil, natural gas and coal placed on the Union market should, therefore, be made available to the markets and the wider public.

(65) Currently, there is limited accurate data, reported at UNFCCC tier 3 or using equivalent methods, on international methane emissions. Many fossil energy exporting third countries have not yet submitted full inventory data to the UNFCCC secretariat. In addition, there is evidence of a large increase of methane emissions from oil and gas production activities globally, namely from 65 to 80 Mt/year in the last 20 years.

(66) As announced in the Methane Strategy, the Union is committed to working in cooperation with its energy partners and other key fossil energy importing and exporting third countries to tackle methane emissions globally. Energy diplomacy on methane emissions has already yielded important outcomes. In September 2021, the Union and the United States announced the Global Methane Pledge, launched at the UN Climate Change Conference (COP 26) in November 2021. The Global Methane Pledge represents a political commitment to work together in order to collectively reduce global methane emissions by 30 % compared to 2020 levels by 2030, and to take comprehensive domestic actions to achieve that target. It also includes a commitment to move towards using best available inventory methodologies to quantify methane emissions. More than 100 countries, accounting for nearly half of global anthropogenic methane emissions, have already joined the Global Methane Pledge.

(67) The IMEO plays an important role to increase transparency on global methane emissions in the energy sector and the Commission should continue cooperating with the IMEO.

(68) In parallel to continuing its diplomatic work to achieve global commitments for a significant reduction of methane emissions, the Union is further encouraging all efforts related to a significant reduction of those emissions globally, and in particular in the third countries supplying fossil energy to the Union.

(69) Therefore, importers of crude oil, natural gas and coal to the Union should be required to provide to the relevant competent authorities information on measures related to measurement, reporting, verification and mitigation of methane emissions undertaken by exporters to the Union and third-country producers, in particular on the application of regulatory or voluntary measures to control the methane emissions of the third-country producers supplying crude oil, natural gas or coal, such as LDAR surveys or measures to control and restrict venting events and flaring events. The levels of measurement and reporting set out in the information requirements applied to importers should correspond to the ones applied to Union operators. Furthermore, the obligation on importers to provide information on measures taken to control methane emissions should not be more burdensome than the corresponding obligation on Union operators. Member States should communicate the information on those measures to the Commission. On the basis of that information, the Union should set up and manage a methane transparency database, containing, inter alia, information reported by Union undertakings and by importers of crude oil, natural gas and coal. Such a database would serve as a source of information for the purchasing decisions of importers of crude oil, natural gas and coal, as well as for other stakeholders and the public. In addition to the methane transparency database, the Commission should develop methane performance profiles, containing the methane emissions data related to crude oil, natural gas and coal placed on the Union market. Those profiles should also include an assessment of the efforts undertaken by Union producers, importers and third-country producers and exporters of fossil energy to the Union to measure and report, as well as reduce, their methane emissions. Those profiles should further include information on the regulatory actions regarding the measurement, reporting, verification and mitigation taken by third countries where crude oil, natural gas and coal is produced.

(70) In addition, the Commission should set up a global methane monitoring tool which provides information on the occurrence, magnitude and location of high methane-emitting events from energy sources, as well as a rapid reaction mechanism to address super-emitting events occurring within or outside the Union. In that regard, the Commission should take into account any duly substantiated information received from Member States or third parties on super-emitting events. Member States should be encouraged to share with the Commission such information. Those tools should further encourage real and demonstrable results from the implementation of measures regulating methane emissions and from effective mitigation actions taken by undertakings in the Union and those supplying fossil energy to the Union. It should be possible for those tools to be based on existing international tools or frameworks. Those tools should pool data from several certified data providers and services, including the Copernicus component of the Union Space Programme established by Regulation (EU) 2021/696 of the European Parliament and of the Council (15) and the IMEO. They should provide information for the purposes of the Commission’s bilateral dialogues with relevant third countries regarding methane emission policies and measures.

(71) Together, the methane transparency database, the methane performance profiles, the global methane monitoring tool and the rapid reaction mechanism should contribute to enhancing transparency for buyers in the Union, allowing them to make informed supply decisions, and improving the possibility of a wider uptake of methane emission mitigation solutions across the globe. In addition, those instruments should further incentivise third-country undertakings to apply international methane emission measurement and reporting standards, such as those adopted within the OGMP 2.0 framework, or to adopt effective measurement, and reporting and mitigation measures, and allow for verification.

(72) New contracts which Union importers conclude for the supply of crude oil, natural gas or coal should strengthen the uptake in third countries of rules to monitor, report and verify methane emissions equivalent to those set out in this Regulation. Rules should be put in place to enable third-country suppliers and Union importers to demonstrate the equivalence of such measures with the requirements of this Regulation, with regard to crude oil, natural gas or coal imported to the Union. While clauses to that effect cannot be imposed in the case of existing contracts, it is possible to include such clauses in new contracts or in existing contracts which are in the process of being renewed, even tacitly. In that context, model clauses recommended by the Commission would be useful for undertakings.

(73) It should be possible for equivalence of monitoring, reporting and verification of methane emissions to be achieved not only by measures applied by individual undertakings, but also at third-country level, through the legal frameworks in place governing such monitoring, reporting and verification. The Commission should therefore be empowered to establish the requirements concerning evidence to be provided by third countries in that regard, actively engaging with all exporting third countries and having due regard to any different circumstances present in those third countries and to the Union’s obligations under international law. The Commission should also be empowered to establish and revoke equivalence for individual third countries, where appropriate.

(74) Instruments, including dialogues on super-emitting events, monitoring, reporting and verification equivalence decisions and the adoption of cooperation frameworks, should be envisaged to ensure the proper implementation of the obligations on importers, as well as on producers or exporters established in third countries that supply crude oil, natural gas or coal to the Union. The Commission should be able to propose instruments to cooperate with third countries. The adoption of those instruments should be subject to the relevant provisions of the Treaties, where applicable.

(75) The Commission should not enter into dialogue with third countries on super-emitting events, should refrain from adopting equivalence decisions and should not recommend the opening of negotiations for a cooperation framework where that would risk circumventing restrictive measures adopted under Article 29 of the Treaty on European Union (TEU) or Article 215 of the Treaty on the Functioning of the European Union (TFEU) on the import of crude oil, natural gas and coal.

(76) Once the methane transparency database, the methane performance profiles, the global methane monitoring tool and the rapid reaction mechanism are in place, the Commission should establish the methodology for calculating the methane intensity of the production of crude oil, natural gas and coal. That methodology should be made publicly available. The Commission should, on that basis, assess the potential impact of various levels of maximum methane intensity values on the security of energy supply, as well as on the competitiveness of the Union’s economy.

(77) The Commission should be empowered to establish mandatory maximum methane intensity values and classes associated with the production of crude oil, natural gas and coal placed on the Union market, based on the methodology for calculating the methane intensity of the production of crude oil, natural gas and coal and the assessment of the potential impact of establishing maximum methane intensity values. Those values should be set at levels that promote the reduction of global methane emissions, while preserving the security of energy supply at Union and national level, ensuring non-discriminatory treatment and protecting the competitiveness of the Union’s economy.

(78) To ensure harmonised implementation of this Regulation and to create a common technical framework for all actors in the oil, gas and coal sectors, the Commission should consider, in accordance with Regulation (EU) No 1025/2012 of the European Parliament and of the Council (16), requesting the relevant European standardisation organisations to draft harmonised standards for the measurement and quantification of methane emissions in the oil, gas and coal sectors, for LDAR surveys and for venting and flaring equipment. Those standards should become mandatory for the purposes of the application of this Regulation, in order to ensure a harmonised approach amongst operators, undertakings and mine operators and those involved in ensuring compliance with this Regulation, in particular the Commission, competent authorities and verifiers. Where harmonised standards cannot be delivered or do not ensure compliance with the requirements of this Regulation, the Commission should be empowered to adopt technical prescriptions to cover the necessary requirements. Until the date of application of such standards or technical prescriptions, operators, undertakings and mine operators should follow state-of-the-art industry practices and the best available technologies.

(79) Member States should lay down rules on penalties applicable to infringements of this Regulation and take all measures necessary to ensure that they are implemented. Those penalties should be effective, proportionate and dissuasive. It should be possible for those penalties to include fines and periodic penalty payments. In order for those penalties to have a significant deterrent effect, they should be adequate to the type of infringement, to the economic benefit derived from the infringement and to the type and gravity of the environmental damage and impact on human safety and health. When imposing penalties, the relevant authorities should duly take into account the nature, gravity and duration of the infringement in question. Penalties should be imposed in a non-discriminatory way and in line with Union, international and national law. Applicable procedural safeguards and the principles of the Charter of Fundamental Rights of the European Union should be respected.

(80) For reasons of consistency, a list of the types of infringements that should be subject to penalties should be set out. In addition, to facilitate the consistent application of penalties across the Member States, common non-exhaustive and indicative criteria for the application of penalties should be set out. The deterrent effect of penalties should be reinforced by providing for the possibility of publishing the information related to the penalties imposed by Member States, subject to Regulations (EU) 2016/679 (17) and (EU) 2018/1725 (18) of the European Parliament and of the Council where the penalties are imposed on natural persons.

(81) As a result of the provisions requiring investments by regulated entities to be taken into account in tariff setting, Regulation (EU) 2019/942 of the European Parliament and of the Council (19) should be amended to entrust the European Union Agency for the Cooperation of Energy Regulators (ACER) with the task of making available a set of indicators and reference values for the comparison of unit investment costs linked to measurement, quantification, monitoring, reporting, verification and reduction of methane emissions for comparable projects.

(82) In order to define the elements of the phase out of venting and flaring in coking coal mines, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission to supplement this Regulation by setting out restrictions on venting methane from ventilation shafts for coking coal mines. In addition, in order to allow for further information to be required from importers, where necessary, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission to supplement this Regulation by modifying or adding to the information to be provided by importers. Furthermore, in order to establish the methodology for calculating the methane intensity associated with crude oil, natural gas and coal placed on the Union market at the level of the producer, as well as to establish the relevant maximum methane intensity values and classes, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission to supplement this Regulation. Finally, in order to ensure harmonised implementation of this Regulation, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission to supplement this Regulation by adopting harmonised standards and technical prescriptions. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (20). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(83) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission to adopt detailed rules with regard to templates for reporting methane emissions, minimum detection limits and detection techniques for detection devices and thresholds applying to the first step of LDAR surveys, as well as the procedure and requirements and individual decisions in relation to the equivalence of monitoring, reporting and verification measures in third countries, in accordance with Article 291 TFEU. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (21).

(84) The Commission should monitor and review the application of this Regulation and submit a report to the European Parliament and to the Council. That report should assess in particular the effectiveness and efficiency of this Regulation, the level of reduction of methane emissions achieved and whether additional or alternative measures are necessary. That report should take into account the relevant Union legislation in related fields. Depending on the conclusions in that report and as part of the review of this Regulation, the Commission may consider submitting legislative proposals, where appropriate.

(85) Since the objectives of this Regulation, namely laying down rules for the accurate measurement, quantification, monitoring, reporting and verification, as well as for the reduction of methane emissions in the energy sector in the Union, cannot be sufficiently achieved by the Member States but can rather, by reason of the scale and effects of the action, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,

HAVE ADOPTED THIS REGULATION:

CHAPTER 1

GENERAL PROVISIONS

Article 1

Subject matter and scope

(a) oil and fossil gas exploration and production, and fossil gas gathering and processing;

(b) inactive wells, temporarily plugged wells and permanently plugged and abandoned wells;

(c) natural gas transmission and distribution, excluding metering systems at final consumption points and the parts of service lines between the distribution network and the metering system located on the property of final customers, as well as underground storage and operations in LNG facilities; and

(d) active underground coal mines and surface coal mines, closed underground coal mines and abandoned underground coal mines.

Article 2

Definitions

For the purposes of this Regulation, the following definitions apply:

(1) ‘methane emissions’ means all direct emissions from any component, whether they result from venting, incomplete combustion from flaring, or from leaks;

(2) ‘component’ means any part or element of equipment used in oil, natural gas or coal installations or infrastructure, that has the potential to emit methane;

(3) ‘operator’ means any natural or legal person who operates or controls an asset, or, where provided for under national law, to whom decisive economic power over the technical functioning of an asset has been delegated;

(4) ‘asset’ means a business or operating unit, which can be composed of several facilities or sites, including operated assets and non-operated assets;

(5) ‘operated assets’ means assets which are under the operational control of the operator;

(6) ‘non-operated assets’ means assets which are not under the operational control of the operator;

(7) ‘site’ means a collection of components with some relation to one another as a subdivision of an asset;

(8) ‘transmission’ means transmission as defined in Article 2, point (17), of Directive (EU) 2024/1788 of the European Parliament and of the Council (22);

(9) ‘transmission system operator’ means transmission system operator as defined in Article 2, point (18), of Directive (EU) 2024/1788;

(10) ‘distribution’ means distribution as defined in Article 2, point (19), of Directive (EU) 2024/1788;

(11) ‘distribution system operator’ means distribution system operator as defined in Article 2, point (20), of Directive (EU) 2024/1788;

(12) ‘mine operator’ means any natural or legal person who operates or controls a coal mine or, where provided for under national law, to whom decisive economic power over the technical functioning of a coal mine has been delegated;

(13) ‘verification’ means the activities carried out by a verifier to assess the conformity with this Regulation of the reports transmitted by the operators, undertakings and mine operators pursuant to this Regulation;

(14) ‘verifier’ means a legal person who carries out verification activities and who is, at the time a verification statement is issued, accredited by a national accreditation body pursuant to Regulation (EC) No 765/2008, or, without prejudice to Article 5(2) of that Regulation, a natural person otherwise authorised to carry out verification activities;

(15) ‘source’ means a component or a geological structure that releases methane into the atmosphere whether intentionally or unintentionally, intermittently or persistently;

(16) ‘emission factor’ means a coefficient that quantifies the emissions of a gas per unit of activity, which is based either on a sample of measurement data or other quantification methods, averaged to develop a representative rate of emission for a given activity level under a given set of operating conditions;

(17) ‘generic emission factor’ means a standardised emission factor for each type of emission source which is derived from inventories or databases, but in any case not verified by means of direct measurements;

(18) ‘specific emission factor’ means an emission factor for a type of emission source which is derived from direct measurements;

(19) ‘direct measurement’ means measurement of the methane emissions at source-level with a measuring device which allows such a measurement;

(20) ‘quantification’ means activities to determine the quantity of methane emissions by means of direct measurements or, where direct measurements are not feasible, based on other methods such as simulation tools, and other detailed engineering calculations or a combination of such methods;

(21) ‘site-level methane emissions’ means all sources of methane emissions within a site;

(22) ‘site-level measurement’ means a measurement which captures a complete overview of all site-level methane emissions, including, for a pipeline network, emissions from segments of such a network, and typically involves the use of sensors mounted on a mobile platform, such as a vehicle, a drone, an aircraft, a boat or a satellite, or the use of other means, such as fixed sensors or continuous point sensor networks;

(23) ‘undertaking’ means a natural or legal person who carries out at least one of the following activities: oil or fossil gas exploration and production, fossil gas gathering and processing, or gas transmission, distribution and underground storage, including with regard to LNG;

(24) ‘LNG facility’ means an LNG facility as defined in Article 2, point (33), of Directive (EU) 2024/1788;

(25) ‘leak detection and repair survey’ or ‘LDAR survey’ means a survey to identify and detect sources of methane leaks and other unintentional methane emissions, and to repair or replace the relevant components;

(26) ‘type 1 leak detection and repair survey’ or ‘type 1 LDAR survey’ means a leak detection and repair survey carried out in accordance with the requirements set out under Article 14(2), (7) and (8) and Part 1 of Annex I for type 1 LDAR surveys;

(27) ‘type 2 leak detection and repair survey’ or ‘type 2 LDAR survey’ means a leak detection and repair survey carried out in accordance with the requirements set out under Article 14(2), (7) and (8) and Part 1 of Annex I for type 2 LDAR surveys;

(28) ‘production location’ means a location where oil or natural gas is extracted from the ground and where no processing takes place;

(29) ‘processing location’ means a location where processes, such as the separation of oil and natural gas from water, are used to treat oil and natural gas;

(30) ‘shutdown’ means a situation where a site or part of its components no longer operates under normal operating conditions and is shut down, and where complete or partial pressure reduction is required before repair or maintenance works can be initiated;

(31) ‘venting’ means the direct release of uncombusted methane into the atmosphere;

(32) ‘flaring’ means the disposal of methane by controlled combustion, in a device designed for that purpose;

(33) ‘routine flaring’ means flaring during the normal production of oil or fossil gas, in the absence of adequate facilities or amenable geology to re-inject methane, utilise it on-site or dispatch it to a market, and excludes flaring caused by an emergency or a malfunction;

(34) ‘flare stack’ means a device equipped with a pilot burner used for flaring;

(36) ‘malfunction’ means a sudden, unavoidable failure or breakdown of equipment beyond the reasonable control of the operator which substantially disrupts operations but does not constitute an equipment failure or breakdown caused entirely or in part by poor maintenance or negligent operation, or by another preventable cause;

(37) ‘destruction and removal efficiency’ means the mass percentage of methane that is destroyed or removed after combustion has ceased relative to the quantity of methane entering the flare stack;

(38) ‘inactive well’ means an exploration or production oil or gas well or well site, onshore or offshore, in which, for at least 1 year, no operations for exploration or production have taken place, with the exception of temporarily plugged wells and permanently plugged and abandoned wells;

(39) ‘temporarily plugged well’ means an exploration or production oil or gas well or well site, onshore or offshore, where well barriers have been installed to temporarily isolate the producing reservoir and where access to the well is still provided for;

(40) ‘permanently plugged and abandoned well’ means an exploration or production oil or gas well or well site, onshore or offshore, which has been plugged and will not be re-entered, in which all operations have been terminated and in which all installations associated with the well have been removed in accordance with the applicable regulatory requirements, and where documentation can be provided as established in Part 1, point 3, of Annex V;

(41) ‘remediating’ means the process of cleaning up contaminated water and soil;

(42) ‘reclaiming’ means the process of returning an oil or gas well or well site to having soil and vegetation conditions similar to those that existed before it was disturbed;

(43) ‘coal mine’ means a site where coal mining occurs or has occurred, including lands, excavations, underground passageways, shafts, slopes, tunnels and workings, structures, facilities, equipment, machines and tools situated on the surface or underground and used in, or resulting from the work of extracting lignite, subbituminous coal, bituminous coal or anthracite from its natural deposits in the earth by any means and by any method, and includes the work of preparing the coal for extraction;

(45) ‘underground coal mine’ means a coal mine where coal is produced by tunnelling into the earth to the coalbed, where the coal is then mined with underground coal mining equipment such as cutting machines and continuous, longwall and shortwall mining machines and transported to the surface;

(46) ‘surface coal mine’ means a coal mine where coal lies near the surface and can be extracted by removing the covering layers of rock and soil;

(47) ‘ventilation shaft’ means a vertical passage used to move fresh air underground or to remove methane and other gases from an underground coal mine;

(48) ‘drainage station’ means a station which collects methane from a coal mine gas drainage system;

(49) ‘drainage system’ means a system which may comprise multiple methane sources and which drains methane-rich gas from coal seams or surrounding rock strata and transports it to a drainage station;

(50) ‘post-mining activities’ means activities carried out after coal has been mined and transported to the surface, including coal handling, processing, storage and transport;

(51) ‘continuous measurement’ means a measurement where the reading is taken at least every minute;

(52) ‘coal deposit’ means an area containing significant concentrations and minable quantities of coal, defined according to the Member State’s methodology on documenting geological mineral deposits;

(53) ‘closed coal mine’ means a coal mine where coal production has ceased, which is closed in accordance with the applicable licensing requirements or other arrangements, and for which an operator, owner or licensee has still a valid permit, licence or other legal document conferring responsibility for the coal mine;

(54) ‘abandoned coal mine’ means a coal mine where coal production has ceased but for which no operator, owner or licensee can be identified as being subject to the obligations under a valid permit, licence or any other legal document conferring responsibility for the coal mine, or that has not been closed in a regulated manner;

(55) ‘alternative use of an abandoned underground coal mine’ means the use of the subsurface mine infrastructure and coal mining equipment for purposes other than coal production;

(56) ‘coal mining equipment’ means any equipment that remains linked to the methane-bearing strata, such as gob vents and drainage pipes;

(57) ‘coking coal mine’ means a coal mine where at least 50 % of the production output averaged over the last 3 available years is coking coal, as defined in Annex B to Regulation (EC) No 1099/2008 of the European Parliament and of the Council (23);

(58) ‘producer’ means an undertaking which, in the course of a commercial activity, produces crude oil, natural gas or coal, by extracting it from the ground in a licensed area, processing it or conveying it through connected infrastructure within that licensed area;

(59) ‘importer’ means a natural or legal person who, in the course of a commercial activity, places crude oil, natural gas or coal originating from a third country on the Union market, including any natural or legal person established in the Union appointed to carry out acts and formalities required under Chapter 5;

(60) ‘exporter’ means the contractual counterparty to the importer in each contract concluded for the supply of crude oil, natural gas or coal into the Union;

(61) ‘methane performance profile’ means the individual information and datasheets for Member States, third countries and, as applicable, Union producers or importers, as well as third-country producers or exporters supplying crude oil, natural gas or coal to the Union or placing crude oil, natural gas or coal on the Union market, as applicable, which are published in the methane transparency database;

(62) ‘super-emitting event’ means an event occurring within or outside the Union where a source or a set of closely connected sources in a site emits above 100 kg of methane per hour;

(63) ‘reconciliation process’ means the investigation and explanation of the reasons for any statistically significant discrepancies between source-level quantification and site-level measurement of methane emissions.

Article 3

Costs incurred by operators

The unit investment costs referred to in paragraph 2 may be used by the regulatory authorities to benchmark the costs incurred by operators.

The relevant regulatory authorities referred to in paragraph 1 and the relevant regulated entities shall provide ACER with all the data necessary for the comparison referred to in the first subparagraph of this paragraph.

CHAPTER 2

COMPETENT AUTHORITIES AND INDEPENDENT VERIFICATION

Article 4

Competent authorities

Member States shall notify the Commission of the names and contact details of their competent authorities by 5 February 2025. Member States shall notify the Commission without delay of any changes to the names or contact details of their competent authorities.

Article 5

Tasks of the competent authorities

Where information is withheld on one or more of the grounds referred to in Article 4 of Directive 2003/4/EC or, where applicable, under Union law on the protection of personal data, the competent authorities shall indicate the type of information that is withheld and the reasons therefor.

Article 6

Inspections

Where an inspection has identified a serious breach of this Regulation, the competent authorities shall issue, as part of the report referred to in paragraph 5, a notice of remedial actions to be undertaken by the operator, undertaking, mine operator or importer, setting out clear deadlines for those actions.

Alternatively, the competent authorities may decide to instruct the operator, undertaking, mine operator or importer to submit to the relevant competent authority for approval a set of remedial actions to address the serious breaches which they have identified within 1 month from the date of conclusion of the inspection. Those actions shall be included in the report referred to in paragraph 5.

The period between inspections shall not exceed 3 years. Where an inspection has identified a serious breach of this Regulation, the subsequent inspection shall take place within 10 months.

(a) investigate substantiated complaints referred to in Article 7 and occurrences of non-compliance as soon as possible after the date on which the competent authorities have become aware of such complaints or non-compliance and no later than 10 months after that date;

(b) ensure, where deemed relevant by the competent authorities, that leak repairs or replacements of components were carried out in accordance with Article 14 and that mitigation measures were implemented in accordance with Articles 18, 22 and 26;

(c) ensure compliance where a derogation has been granted under Article 14(5);

(d) verify, where deemed relevant by the competent authorities, compliance by undertakings and importers with this Regulation.

Where appropriate, the competent authorities may prepare one report covering multiple inspections of assets, sites or components of the same operator, undertaking, mine operator or importer provided that such inspections are carried out before the next routine inspection.

The report shall be notified to the operator, undertaking, mine operator or importer concerned and made publicly available within 2 months of the date of the inspection. Where the inspection was triggered by a complaint made in accordance with Article 7, the competent authorities shall notify the complainant once the report is publicly available.

The report shall be made publicly available by the competent authorities in accordance with Directive 2003/4/EC. Where information is withheld on one or more of the grounds referred to in Article 4 of that Directive, the competent authorities shall indicate in the report the type of information that is withheld and the reasons therefor.

For the purposes of this paragraph, an intergovernmental organisation or public body shall not be deemed appropriate where its objectivity may be compromised by a conflict of interest.

Article 7

Complaints

This paragraph shall not apply where complaints that are not sufficiently substantiated are repeatedly lodged and for that reason deemed abusive by the competent authorities.

Article 8

Verification activities and verification statement

(a) the choice and employment of emission factors;

(b) the methodologies, calculations, samplings or statistical distributions leading to the determination of methane emissions;

(c) any risk of inappropriate measuring or reporting;

(d) any quality control or quality assurance systems applied by the operators, undertakings, mine operators or importers.

Until the application date of those standards and technical prescriptions as applicable, operators, undertakings, mine operators and importers, as applicable, shall provide information to the verifiers on the relevant standards, including European or other international standards, or methodologies used by them, for the purpose of verification activities.

Verification activities shall also include, where relevant, announced and unannounced site checks to assess the reliability, credibility and accuracy of the data sources and methodologies used.

The verifier shall issue a verification statement only where reliable, credible and accurate data and information allow for methane emissions to be determined with a reasonable degree of certainty and provided that the reported data is coherent with the estimated data, complete and consistent.

If, following the verifier’s assessment, the verifier concludes that the emissions report does not comply with the requirements of this Regulation, the verifier shall inform the operator, the undertaking, the mine operator or the importer of that conclusion and provide reasoned feedback to the operator, the undertaking, the mine operator or the importer in light of recognised standards. The operator, the undertaking, the mine operator or the importer shall submit a revised emissions report to the verifier without delay and within the deadline set by the verifier.

Article 9

Independence and accreditation or authorisation of verifiers

Verifiers shall not have relations with operators, undertakings, mine operators or importers that could affect their independence and impartiality.

Where no specific provisions concerning the accreditation of verifiers are laid down in this Regulation, Regulation (EC) No 765/2008 shall apply.

Article 10

Use and sharing of information

(a) aggregation of methane emissions data in accordance with appropriate statistical methods;

(b) verification and validation of methodologies and statistical processes used by the industry to quantify methane emissions data;

(c) development of data aggregation and analysis methodologies in accordance with scientific and statistical good practice to ensure a higher level of accuracy of methane emission estimates, with appropriate characterisation of the uncertainty;

(d) publication of aggregated reported data by core source and by level of reporting, classified by, where available, operated and non-operated assets, in compliance with competition and confidentiality requirements;

(e) reporting of findings on major discrepancies between data sources contributing to build more robust scientific methodologies;

(f) reporting of super-emitting events identified by way of an early detection and warning system.

CHAPTER 3

METHANE EMISSIONS IN THE OIL AND GAS SECTORS

Article 11

Scope

This Chapter applies to the activities referred to in Article 1(2), points (a), (b) and (c).

Article 12

Monitoring and reporting

(a) for operated assets, by 5 February 2026; and

(b) for non-operated assets, by 5 February 2027, where those assets have not been reported under point (a).

Where direct measurement is not possible, reporting shall involve the use of specific emission factors based on source-level quantification or sampling.

(a) for operated assets, by 5 February 2027 and by 31 May every year thereafter; and

(b) for non-operated assets, by 5 August 2028 and by 31 May every year thereafter, where those assets have not been reported under point (a).

Before submitting the report to the competent authorities, operators and undertakings shall ensure that the report is assessed by a verifier and includes a verification statement issued in accordance with Article 8.

(a) type and location of the emission sources;

(b) detailed data for each type of emission source, reported in tonnes of methane and in tonnes of CO2 equivalent, using global warming potentials as defined in the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC);

(c) detailed information on the quantification methodologies;

(d) all methane emissions for operated assets;

(e) share of ownership and methane emissions from non-operated assets multiplied by the share of ownership;