Methane Emissions from the Energy Sector and the EU Emission Trading System

Background

The European Green Deal envisages an important role for gas in the energy transition. However, to follow this pathway, the gas value chain should be more oriented towards sustainability. Methane emissions are responsible for around a quarter of today’s global warming, second only to carbon dioxide emissions (which currently are responsible for half of global warming).

In addressing methane emissions from the energy sector, one of the key considerations is that the EU has only a minor direct responsibility (accounting for only 2.3% of global methane emissions), with the Russian Federation and the United States being responsible for 15% and 14% of global emissions, respectively. However, the EU is the largest buyer of natural gas on the international market – having a 46% share – and therefore it could well be in a position to promote the adoption of methane emission-reduction strategies and standards by the countries from which it buys gas (mainly the Russian Federation, Algeria, Nigeria, Qatar, and the United States).

One possible way of providing incentives for gas network companies to reduce methane emissions would be to include these emissions in the EU Emission Trading System (EU ETS), which has been in operation since 2005.

Against this background, the online Workshop will aim to assess the pros and cons of extending the EU ETS to cover methane emissions.

To explore these issues, after an opening session outlining the current strategies and measures to curb methane emissions in the EU, the Workshop will be structured in two sessions:

• Session I will review the state of the art in measurement, reporting and verification of methane emission, with specific reference to the requirements for the inclusion of these emissions in the EU ETS;
• Session II will review the international experience with including methane emission in tradable quota systems and assess to what extent such an inclusion in the EU ETS will be feasible and its advantages and drawbacks, and any associated challenges.

Please note

This workshop is by invitation only. For further information, please contact: Elena Iorio