Methane emission reduction : an important step in strengthening the sustainability dimension in gas network companies

Highlights: – The European Green Deal envisages an important role for gas in the energy transition. To follow this pathway, the gas value chain should be more oriented towards sustainability. Methane emission reduction should also be strongly pursued by gas network companies. – Regulation to limit methane emissions by the gas sector should be established at the European level. It should strive to establish dynamic targets, create a robust and transparent Monitoring, Reporting and Verification (MRV) framework and incentivise the network companies to establish and realise ambitious action plans. – The creation of a European Methane Emissions Observatory could provide an efficient tool for substantially reducing methane emissions. The Observatory would be well-placed to reconcile data from bottom-up corporate reporting and top-down aerial surveys and satellite measurements, creating the necessary transparency in the results obtained. – National Regulatory Authorities (NRAs) should recognise the efficiently incurred costs for regulated entities. A form of incentive- based regulation oriented to minimising network losses based on the experiences of the electricity sector could provide a promising approach.