Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on methane emissions reduction in the energy sector and amending Regulation (EU) 2019/942
Date: 2022-03-03
Institutions: Directorate-General for Energy, European Commission
Subjects: EU energy policy, coal industry, gas, greenhouse gas, hydrocarbon, import (EU), oil industry, reduction of gas emissions

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   EUROPEAN COMMISSION  Brussels, 3.3.2022  COM(2021) 805 final/2 2021/0423 (COD)  CORRIGENDUM This document corrects document COM(2021) 805 final of 15.12.2021. Concerns all language versions. The Legislative Financial Statement was missing and has been added. The text shall read as follows:  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on methane emissions reduction in the energy sector and amending Regulation (EU) 2019/942 (Text with EEA relevance) {SEC(2021) 432 final} - {SWD(2021) 459 final} - {SWD(2021) 460 final}  
 
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The European Green Deal puts the Union on a path to climate neutrality by 2050 through the 
deep  decarbonisation  of  all  sectors  of  the  economy.  It  also  aims  to  protect,  conserve  and 
enhance  the  EU's  natural  capital,  and  protect  the  health  and  well-being  of  citizens  from 
environment-related risks and impacts. Methane is a powerful greenhouse gas, second only to 
carbon dioxide in its overall contribution to climate change and responsible for about a third 
of current climate warming. Although it remains in the atmosphere for a shorter period than 
carbon dioxide (10-12 years before oxidizing into carbon dioxide that continues to trap heat), 
on a molecular level, methane is a far more powerful climate forcer (with a global warming 
potential  of  28  times  that  of  carbon  dioxide  over  100  years  and  of  86  over  20  years).  In 
addition, methane contributes to ozone formation, which is a potent air pollutant that causes 
serious health problems.  

Approximately  60%  of  global  methane  emissions  are  anthropogenic,  of  which  the  largest 
sources,  based  on  estimations,  are  fossil  fuel  production  and  use  (between  a  fourth  and  a 
third), waste (around a quarter) and agriculture (around half of total  methane  emissions), in 
particular linked to intensive production.  

The  Intergovernmental  Panel  on  Climate  Change  (IPCC)  notes  that  deep  reductions  in 
methane emissions must be achieved by 2030 for the world to stay below the 1.5°C (or even 
the 2°C) 2050 global temperature target1. The most recent IPCC report underlines the role of 
methane  as  one  of  the  main  greenhouse  gases  responsible  for  climate  change.  The  report 
outlines  that  methane  levels  are  at  an  all-time  high  and  well  above  the  emission  levels 
compatible  with  limiting  warming  to  1.5°C.  There  is  thus  a  need  for  a  sharp,  rapid  and 
sustained  reduction  in  methane  emissions  to  slow  down  global  warming  and  improve  air 
quality.  It  is  important  to  note  that  the  report  concludes  that  the  increase  of  methane  in  the 
atmosphere is the result of human activity and that fossil fuels have been a large contributor to 
the growth in methane emissions at least since 2007, alongside agriculture (mainly livestock) 
and wastewater. 

The  2030  Climate  Target  Plan’s  impact  assessment  indicates  that  in  the  EU  the  most  cost-
effective methane emission savings can be achieved in the energy sector. These emissions are 
a transboundary problem and uncoordinated regulatory treatment  across  Member States  and 
sectors creates gaps and inefficiencies and may impair the functioning of the Union’s single 
market  for  energy.  As  the  majority  of  methane  emissions  linked  to  fossil  energy  consumed 
within the Union occur outside its borders, only joint action by Member States could present 
results in this field. 

In  September  2021  the  Union  and  the  United  States  announced  the  Global  Methane  Pledge 
which  represents  a  political  commitment  to  reduce  global  methane  emissions  across  all 
methane-emitting  sectors  by  30%  by  2030  (from  2020  levels),  launched  at  the  UN  Climate 
Change  Conference  (COP  26)  in  November  2021  in  Glasgow.  Over  one  hundred  countries 
have  committed  to  support  the  Pledge,  representing  nearly  half  of  global  anthropogenic 

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IPCC,  2021:  Summary  for  Policymakers.  In:  Climate  Change  2021:  The  Physical  Science  Basis. 
Contribution  
of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, 
Cambridge University Press. In Press. 

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methane  emissions.  The  Global  Methane  Pledge  includes  a  commitment  to  move  towards 
using best available inventory methodologies to quantify methane emissions, with a particular 
focus on high emission sources.  

The  general  objective  of  the  Regulation  is,  in  the  context  of  the  functioning  of  the  internal 
market  for  energy  and  while  ensuring  security  of  supply  in  the  Union,  to  preserve  and 
improve  the  environment  by  reducing  methane  emissions  from  fossil  energy  produced  or 
consumed in the Union.  

The specific objectives are the following: 

(i) 

 Improve  the  accuracy  of  information  on  the  main  sources  of  methane 
emissions associated with energy produced and consumed within the EU. The 
goal is to ensure the availability of asset-level data and robust quantification of 
emissions, and thereby increase the accuracy of measurements – including the 
reporting  of  greenhouse  gas  (‘GHG’)  inventories  data  to  the  United  Nations 
Framework  Convention  on  Climate  Change  (‘UNFCCC’)  –  as  well  as  the 
scope for appropriate measures for mitigation.  

(ii)  Ensure  further  effective  reduction  of  methane  emissions  across  the  energy 
supply  chain  in  the  EU.  This  specific  objective  addresses  the  market  failures 
leading to insufficient mitigation of methane emissions by companies. 

(iii)  Improve the availability of information to provide incentives for the reduction 
of  methane  emissions  related  to  fossil  energy  imported  to  the  EU.  As  the 
majority of methane emissions linked to fossil energy consumed within the EU 
occur outside the EU, this  specific objective seeks to  set  incentives to  reduce 
methane emissions in partner countries by creating transparency in the market.  

• 

Consistency with existing policy provisions in the policy area 

In  Regulation  (EU)  2021/1119  (‘European  Climate  Law’),  the  Union  has  enshrined  into 
legislation  the  target  of  economy-wide  climate  neutrality  by  2050  and  also  established  a 
binding  Union  domestic  reduction  commitment  of  net  greenhouse  gas  emissions  (emissions 
after deduction of removals) of at least 55% below 1990 levels by 2030. 

The proposal builds on the Union’s 2030 Climate Target Plan and its impact assessment. The 
Climate  Target  Plan  showed,  on  the  basis  of  modelled  scenarios,  that  achievement  of  an 
increased  climate  target  of  at  least  55%  net  greenhouse  gas  emissions  reduction  in  2030  is 
feasible and would enable a smooth trajectory to climate neutrality in 2050. It also highlights 
the need to step-up reductions in methane emissions.  

The  European  Green  Deal  combines  a  comprehensive  set  of  mutually  reinforcing  measures 
and  initiatives  aimed  at  achieving  climate  neutrality  in  the  Union  by  2050.  The  European 
Green  Deal  Communication2  indicates  that  the  decarbonisation  of  the  gas  sector  will  be 
facilitated,  including  by  addressing  the  issue  of  energy-related  methane  emissions.  The 
Commission adopted an EU strategy to reduce methane emissions (‘the Methane Strategy’) in 
October  2020  setting  out  measures  to  cut  methane  emissions  in  the  EU,  including  in  the 
energy sector, and internationally.  

Regulation  (EU)  2018/1999  (Governance  Regulation)  requires  Member  States  to  establish 
national  inventory  systems  to  estimate  anthropogenic  emissions  of  greenhouse  gases  and  to 
report those national projections. This reporting is done using  IPCC guidelines, and is often 

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COM(2019) 640 final. 

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based  on  default  emission  factors  rather  than  direct  source-level  measurements,  implying 
uncertainties regarding the precise origin, frequency and magnitude of emissions.  

Methane  emissions  occurring  at  the  level  of  oil  and  fossil  gas  exploration  and  production, 
fossil gas gathering and processing, transmission, distribution, underground storage and liquid 
fossil  gas  (LNG)  terminals,  as  well  as  operating,  closed  or  abandoned  coal  mines  are  not 
specifically regulated at the Union level. 

Directive  2010/75/EU  (Industrial  Emissions  Directive,  IED),  currently  under  revision, 
regulates  pollutant  emissions  from  industrial  installations,  notably  by  setting  emission  limit 
values based on best available techniques as permit conditions. The IED covers the refining of 
mineral oil and gas but not fossil gas upstream, mid and downstream (LNG, underground gas 
storage, transmission, distribution) or coal mining.  
Closely  related  to  the  IED,  Regulation  (EC)  166/20063  (European  Pollutant  Release  and 
Transfer Register, E-PRTR), requires ‘Underground mining and related operations’ to report 
pollutant  releases,  including  methane  when  exceeding  a  reporting  threshold  of  100,000 
kg/year. For measuring methane releases, Appendix 3 of the E-PRTR guidance4 refers to an 
ISO  standard  in  preparation  (by  ISP/TC  146/SC  1/WG  22).  The  E-PRTR  is  also  currently 
under revision. The revision  of the  IED and the  E-PRTR will take into  account  the need to 
avoid double regulation. This proposal is thus complementary to those two acts as it addresses 
methane emissions along the entire fossil energy supply chain. 

On 14 July 2021 the European Commission adopted a series of legislative proposals setting 
out how it intends to achieve climate neutrality in the EU by 2050, including the intermediate 
target of an at least 55% net reduction in greenhouse gas emissions by 2030. In this context, 
the  following  initiatives  have  relevant  links  with  methane  emission  measurement  and 
mitigation: 

Regulation  (EU)  2018/842  (the  Effort  Sharing  Regulation,  ESR)  contains  binding  annual 
greenhouse  gas  emission  targets  at  country  level  for  Member  States  from  2021  to  2030  for 
sectors including transport (without  aviation), buildings, agriculture, waste, industry and the 
parts of the energy sector not covered by the existing EU Emissions Trading System (ETS). It 
includes methane in its scope and this is maintained in the proposal for revision adopted on 14 
July 2021. This initiative is complimentary to the ESR as it introduces specific measures for 
the reduction of methane emissions, as the ESR does not prescribe such measures and leaves 
some margin to Member States on how best to achieve the required greenhouse gas emission 
reductions. Those measures will contribute to  Member States fulfilling their targets  and can 
also contribute to increasing the cost-effectiveness of achieving the ESR’s targets due to the 
trading potential in the ESR between Member States. 

The proposal to amend Regulation (EU) 2018/841 (LULUCF Regulation) as part of the ‘Fit 
for  55’  package  sets  an  overall  EU  target  for  carbon  removals  by  natural  sinks,  national 
targets  will  require  Member  States  to  care  for  and  expand  their  carbon  sinks.  The  proposal 
also  determines  the Union target  of climate neutrality for 2035 in  the land use, forestry and 
agriculture sectors, including also agricultural non-CO2 emissions, i.e. methane. 

Directive (EU) 2018/2001 (Renewable Energy Directive, REDII) is the main EU instrument 
dealing with the promotion of energy from renewable sources and will facilitate the gradual 
replacement  of  fossil  energy  sources  by  renewables.  It  furthermore  contains  default 

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Regulation  (EC)  No  166/2006  of  the  European  Parliament  and  of  the  Council  of  18  January  2006 
concerning  the  establishment  of  a  European  Pollutant  Release  and  Transfer  Register  and  amending 
Council Directives 91/689/EEC and 96/61/EC (OJ L 33, 4.2.2006) 
Guidance Document for the implementation of the European PRTR, European Commission (2006) 

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greenhouse  gas  savings  values including  estimations  of methane losses in the production of 
biogas and biomethane, which can be relevant for the sustainability of biogas and biomethane. 
These default values can be used by producers in their reporting of the greenhouse gas savings 
of  their  production  to  demonstrate  that  they  meet  REDII  sustainability  requirements  and 
indirectly provide incentives for the reduction of methane emissions.  

Methane emissions occurring in space heating and cooling appliances are covered in several 
ecodesign  and  energy  labelling  regulations,  which  provide  rules  for  improving  the 
environmental  performance  of  products,  such  as  household  appliances,  information  and 
communication technologies or engineering.  

Finally,  the  European  Commission  is  also  proposing  to  revise  Directive  2009/73/EC  and 
Regulation  (EC)  715/2009  to  facilitate  the  emergence  of  decarbonised  hydrogen  and  gas 
markets,  by  establishing  a  new  market  design,  facilitating  access  for  renewable  and  low-
carbon  gases  to  pipelines  so  as  to,  on  the  one  hand,  create  the  conditions  for  a  hydrogen 
market and, on the other hand, remove barriers to the decarbonisation of existing natural gas 
grid. The proposal is complementary as it will improve the climate performance of fossil gas 
during the period in which it will be gradually replaced by renewable and low-carbon gases. 

• 

Consistency with other Union policies 

This proposal is complementary to action taken in the fields of agriculture and waste to reduce 
methane emissions.  

As  regards  the  agriculture  sector,  several  challenges  are  addressed  in  the  ‘Farm  to  Fork’5 
strategy. The Commission has set up an expert group to analyse life-cycle methane emissions 
metrics.  In  cooperation  with  sectoral  experts  and  Member  States,  the  Commission  is 
developing an inventory of best practices and available technologies to explore and promote 
the wider uptake of innovative mitigating actions. To encourage carbon-balance calculations 
at farm level, by 2022 the Commission will provide a digital carbon navigator template and 
guidelines on common pathways for the quantitative calculation of greenhouse gas emissions 
and  removals.  The  Commission  will  promote  the  uptake  of  mitigation  technologies  through 
the wider deployment of ‘carbon farming’ in Member States and their Common Agricultural 
Policy  Strategic  Plans,  as  from  2021.  In  the  Horizon  Europe  strategic  plan  2021-2024,  the 
Commission  is  proposing  targeted  research  on  the  different  factors  that  effectively  lead  to 
greenhouse gases emission reductions, focusing on technology and nature-based solutions as 
well as  on the factors leading to  dietary shift. The Commission is also  considering bringing 
part  of  the  cattle  rearing  within  the  scope  of  the  IED,  which  may  contribute  to  curbing 
methane emissions of the sector. 

Methane emissions in the waste sector are covered by existing and upcoming planned reviews 
of  environmental  legislation.  Directive  (EU)  2018/850  (the  Landfill  Directive)  requires 
landfill operators to manage landfill gas by either using it to generate energy or flaring it. In 
the review of the Landfill Directive foreseen for 2024, the Commission will consider further 
action to improve the management of landfill gas, minimise its harmful  climate effects, and 
harness any of its potential energy gains. Furthermore, the ongoing review of the IED is also 
considering the adoption of conclusions on BAT for landfilling that would inter alia address 
methane emissions. Recent changes to EU waste legislation (2018) introduced an obligation 
to collect biodegradable waste separately by 2024, and set a new target of a maximum 10% 
landfilling  of  waste  by  2035.  As  a  result  of  these  changes,  it  is  expected  that  methane 
emissions  from  landfills  will  decrease  further.  Concerning  the  treatment  and  use  of 

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wastewater  and  sewage  sludge  under  the  current  regulatory  framework,  namely  the  Urban 
Waste  Water  Treatment  Directive6  and  the  Sewage  Sludge  Directive7,  emissions  of 
greenhouse gases are not specifically tackled. The implementation of the Urban Waste Water 
Treatment Directive has, however, helped to prevent significant methane emissions due to the 
collection  and  treatment  of  wastewater  inefficient  centralised  facilities.  The  Urban  Waste 
Water  Treatment  Directive  is  currently  being  reviewed.  The  Sewage  Sludge  Directive 
regulates the use of sewage sludge to protect the environment, and in particular soil, against 
the harmful effects of contaminated sludge when used in agriculture.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  legal  basis  of  this  initiative  is  Article  194(2)  of  the  Treaty  on  the  Functioning  of  the 
European Union (TFEU), which empowers the Union to establish the measures necessary to 
achieve the objectives of the Union with regard to policy on energy. The proposal concerns 
the energy sector only and it contributes to the Union’s energy policy objectives as outlined in 
Article 194(1), in particular the functioning of the energy market by harmonizing monitoring, 
reporting  and  abatement  rules  on  methane,  which  contributes  to  preserve  and  improve  the 
environment.  

• 

Subsidiarity (for non-exclusive competence)  

Methane emissions in the energy sector are a transboundary problem and vary across national 
and regional levels of the Union. They are relevant in all Member States to a varying degree, 
depending  on  their  energy  mix  and  natural  endowments,  e.g.  how  many  underground 
coalmines are operated or sealed, how much fossil gas is produced or transported. The scale 
of  gas  infrastructure  demonstrates  the  Union  wide  aspect,  with  roughly  190,000  km  of 
transmission pipelines across all Member States. 

The level of reporting of emissions and the scope of mitigation measures differs by Member 
State and sub-sector. There are several  private and voluntary initiatives, these are,  however, 
insufficient  due  to  limitations  in  scope,  participation  and  enforceability.  Diverse  national 
approaches  may  lead  to  inconsistencies  in  regulatory  treatment  across  Member  States, 
increasing the administrative burden on companies operating in more than one Member State, 
potentially impeding the functioning of the internal market through the creation of barriers to 
operators, as well as complicating the collection of comparable data across the Union.   

In addition, as the majority of methane emissions linked to fossil energy consumed within the 
Union  occur  outside  its  borders,  joint  action  by  Member  States  would  be  more  likely  to 
deliver  results  for  those  parts  of  the  supply  chain  and  preserve  the  integrity  of  the  internal 
energy market.  

In light of the above, the reduction of methane emissions across the Union would benefit from 
a  homogeneous  policy  approach  at  the  Union  level.  The  impacts  of  measures  aimed  at 
methane  measurement  and  mitigation  and  related  effects  on  innovation,  cost-effectiveness, 
and  a  level-playing  field  in  maintenance  of  a  well-functioning  internal  market  warrant 
coordination  across  Member  State  borders.  Coordinated  Union  policies  have  a  much  higher 
chance  of  leading  to  further  reductions  in  methane  emissions  in  the  energy  sector  than 

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Council Directive 91/271/EEC of 21 May 1991 concerning urban waste-water treatment 
Council Directive 86/278/EEC of 12 June 1986 on the protection of the environment, and in particular 
of the soil, when sewage sludge is used in agriculture 

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fragmented national efforts. Coordinated action at the Union level furthermore facilitates the 
full  consideration  of  the  different  capabilities  to  act  among  Member  States  and  private 
entities.  It  also  affords  operators  the  benefits  of  a  single  regulatory  regime,  facilitating 
adherence and reducing administrative burden relative to the application of fragmented rules 
across Member States.  

Union-level  methane  policy  adds  significant  value  for  international  climate  action.  By 
developing  legislation  to  minimise  methane  emissions  in  the  energy  sector,  the  Union  is 
sending  a  strong  political  signal  to  external  actors,  increasing  the  awareness  of  the  harmful 
effects  of  methane  emissions  on  the  climate.  This  signal  will  not  only  encourage  Union 
partners to address the problem of methane emissions in the energy sector, but also lead to the 
creation of an international partnership and thus give the Union a leadership role in addressing 
methane emissions. 

In conclusion, the challenges in reducing methane emissions hence require a harmonised and 
coordinated  approach  and  cannot  be  addressed  efficiently  by  individual  Member  States. 
Union action is thus justified on grounds of subsidiarity in line with Article 194 TFEU. 

• 

Proportionality 

The  proposal  strikes  a  careful  balance  between,  on  the  one  hand,  the  regulatory  autonomy 
Member  States  have  for  national  corrective  actions,  setting  incentives  for  technological 
innovation or deciding on the level of dedicated resources and, on the other hand, the need to 
address the problems concerning methane emissions that have to be tackled at Union level.  

As  described  in  Chapter  6  of  the  Impact  Assessment,  the  costs  and  regulatory  burdens 
associated with this proposal have been kept as limited as possible. The measures foreseen in 
this proposal do not extend beyond what is necessary to solve the identified problems and to 
achieve  the  objectives  set.  The  foreseen  costs  for  the  Commission  and  Member  States  are 
considered as acceptable, also bearing in mind the positive net economic impacts linked to an 
environmentally and socially cost effective abatement level.  

• 

Choice of the instrument 

A  Regulation  is  the  appropriate  legal  instrument  for  this  legislative  proposal  as  it  imposes 
clear and detailed rules which do not give room for divergent transposition by Member States. 
A Regulation ensures that legal requirements are applicable at the same time throughout the 
Union, therefore it would avoid the inefficiencies and regulatory costs/burdens related to an 
inconsistent implementation of the methane emission reduction provisions across the Union.  

In addition, a Regulation is the adequate instrument to impose direct obligations on economic 
operators and national authorities. This would be required in order to have clear obligations to 
quantify report and verify data, as well as to employ measures to mitigate methane emissions, 
including the phasing out of harmful industry practices such as venting and flaring. 

In order to have consistent and comparable data, it is crucial to have harmonised measurement 
and reporting requirements. This can be best done via a Regulation, as shown by related EU 
legal  acts,  such  as  Regulation  (EU)  2015/7578,  Regulation  (EC)  166/2006  or  Implementing 

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Regulation  (EU)  2015/757  of  the  European  Parliament  and  of  the  Council  of  29  April  2015  on  the 
monitoring,  reporting  and  verification  of  carbon  dioxide  emissions  from  maritime  transport,  and 
amending Directive 2009/16/EC, OJ L 123, 19.5.2015, p. 55 

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Regulation (EU) 2018/20669. On this subject, the level of discretion left to Member States in a 
Directive would be incompatible with the need for comparable and therefore harmonised data. 

Furthermore,  with  respect  to  mitigation  measures  and  restrictions  on  industrial  practices, 
Regulation is the adequate instrument to ensure that provisions target companies directly and 
a minimum level-playing field is established in those practices. 

Finally, a Regulation allows the urgency of dealing with methane emissions to be addressed in 
a more direct and conducive manner, in the context of the climate emergency and the Union’s 
climate neutrality target, as explained in section 1 above.  

The choice of a Regulation ensures that the identified problems and objectives are addressed 
in the most effective, efficient and proportionate way. It ensures a careful balance between, on 
the  one  hand,  the  regulatory  autonomy  Member  States  have  for  national  corrective  actions, 
setting incentives for technological innovation, or deciding on the level of dedicated resources 
and, on the other hand, the need to address the problems concerning methane emissions that 
have to be tackled  at Union level.   

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

In line with the Better Regulation Guidelines for impact assessments, the Commission carried 
out a comprehensive stakeholder consultation based on a consultation strategy that included a 
range  of  methods  and  tools.  The  consultation  strategy  aimed  to  ensure  that  all  relevant 
evidence was taken into account, including data about costs, societal impact, and the potential 
benefits  of  the  initiative.  The  strategy  was  designed  in  line  with  the  intervention  logic  and 
combined  both  backward  and  forward-looking  elements.  Several  consultation  tools  were 
employed:  an  online  public  consultation,  a  targeted  consultation  on  costs  of  implementing 
monitoring, reporting and verification (MRV)  regulation based on the Oil and Gas Methane 
Partnership10, in-depth interviews and (three) online stakeholder webinars.   

The open public consultation (OPC) received 131 responses, of those 126 were submitted by 
at least partial completion of the online questionnaire and five additional contributions were 
received in the form of email submissions. 

In particular, the Agency for the Cooperation of Energy Regulators (ACER) and the Council 
of European Energy Regulators (CEER) submitted a survey among their members as informal 
contribution  to  the  open  public  consultation,  expressing  the  view  that  “national  regulatory 
authorities  broadly  support  an  EU-level  harmonized  approach  to  methane  emissions 
monitoring  and  detection,  based  in  particular  on  mandatory  monitoring  of  methane 
emissions.”  

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Commission  Implementing  Regulation  (EU)  2018/2066  of  19  December  2018  on  the  monitoring  and 
reporting  of  greenhouse  gas  emissions  pursuant  to  Directive  2003/87/EC  of  the  European  Parliament 
and  of  the  Council  and  amending  Commission  Regulation  (EU)  No  601/2012,  OJ  L334,  31.12.2018, 
p.1. 
The  Oil  and  Gas  Methane  Partnership  (OGMP),  launched  in  2014,  was  created  by  the  Climate  and 
Clean Air Coalition (CCAC) and the United Nations Environmental Programme (UNEP) as a voluntary 
initiative  to  help  companies  with  regards  measuring  and  reporting  of  methane  emissions.  The  OGMP 
focuses  on  establishing  best-practices  to  improve  the  availability  of  global  information  on  methane 
emissions quantification and management and to drive mitigation actions to reduce methane emissions. 
To date, over 60 companies have signed up to OGMP, covering 30% of global oil and gas production 
and assets in five continents. 

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Stakeholders  expressed  widespread  support  for  developing  a  robust  MRV  standard  for 
methane emissions in the energy sector. In the OPC, 78% of responses supported basing the 
oil  and  gas  part  of  the  MRV  proposal  on  the  methodology  of  the  Oil  and  Gas  Methane 
Partnership, which was  also  backed by  all the EU oil and gas trade associations. There was 
also  wide  support,  including  by  the  coal  industry,  for  including  MRV  provisions  for  coal 
(96% of responses to the OPC). Those aspects are included in this proposal. 

There was  broad support for legislative measures to  mitigate emissions in the oil, fossil gas 
and  coal  sectors.  All  oil  and  gas  industry  associations  that  provided  a  response  to  the  OPC 
expressed  support  for  putting  into  Union  law  an  obligation  on  leak  detection  and  repair 
(LDAR).  NGOs  were  also  widely  supportive  of  such  an  obligation.  All  NGOs  and  industry 
respondents  to  the  OPC  believed  that  it  is  feasible  to  phase  out  routine  venting  and  flaring 
associated  with  energy  produced  and  consumed  in  the  EU.  As  regards  the  inclusion  of 
mitigation  measures  for  coalmine  methane,  the  public  consultation  yielded  strong  support 
(80% of responses). Those aspects are included in this proposal. 

Ninety-two percent of responses to the OPC were supportive of Union legislation on methane 
emissions in the energy sector covering oil and gas placed in the Union market. Specifically, 
96% of responses supported the development of a methane transparency tool at the Union and 
international levels. This element is included in this proposal. 

72% of responses considered that Union legislation on methane emissions in the energy sector 
should  extend  obligations  to  companies  importing  fossil  energy  into  the  Union.  65%  of 
responses considered it feasible to impose the same obligations with respect to MRV, LDAR 
and venting and flaring on all actors of the oil and gas value chain for oil and gas consumed in 
the Union. To respond to this, the proposal includes a review clause explicitly referring to the 
Commission’s prerogative to submit amending legislative proposals to impose more stringent 
measures on importers once better global methane emission data are available.  

• 

Collection and use of expertise 

The proposal and its underpinning impact assessment draw on evidence from the stakeholder 
input to the extensive consultations carried out in this respect, specific workshops, as well as 
literature review, analysis and modelling. The literature review included the results of a series 
of topical studies on key elements of the methane emissions regulations in different countries 
and  EU  Member  States,  limiting  methane  emissions  in  the  energy  sector,  as  well  as 
evaluations  and  assessments  carried  out  in  the  framework  of  other  relevant  Commission 
initiatives. 

• 

Impact assessment 

Throughout the impact assessment work, a range of measures was considered across all areas 
to address the identified problems and problem drivers in order to reach the objectives of the 
initiative.  All  policy  areas  included  a  business  as  usual  option.  Preferred  options  have  been 
identified  for  three  policy  areas.  Following  an  assessment  of  their  effectiveness,  efficiency, 
coherence and proportionality, a package of preferred options was found to be best suited to 
contribute to the set objectives. The package of preferred options includes the following main 
provisions: 

Policy  area  1  considers  options  to  improve  the  accuracy  of  measuring  and  reporting  of 
methane  emissions  in  the  energy  sector  by  obliging  operators  to  carry  out  asset-level 
measurements  and  report  direct  emissions  of  methane  for  economic  activities  in  the  EU 

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territory.  This  includes  compulsory  monitoring,  reporting  and  verification  for  oil  and  gas, 
compulsory  monitoring,  reporting  and  verification  for  oil,  gas  and  coal,  and  compulsory 
monitoring, reporting and verification for oil, gas and coal covering also indirect emissions.  

The  preferred  option  for  policy  area  1  is  to  impose  detailed  (asset-level)  measuring  and 
reporting obligation on methane emissions from oil, gas and coal in the EU energy sector. The 
key benefit is that this will improve the level of reporting of such emissions and will increase 
understanding  of  the  sources  and  magnitude  of  those  emissions  which  will  lead  to  more 
effective abatement of associated emissions. 

Policy area 2 contains options for the mitigation of methane emissions in the EU, through leak 
detection  and repair measures and limits  on venting and  flaring. They  aim  to  ensure further 
effective mitigation of methane emissions across the energy supply chain. The options include 
Commission guidance or mandatory measures on mitigation of methane emissions in  the oil 
and  fossil  gas  sectors,  mandatory  measures  on  mitigation  of  methane  emissions  in  the  oil, 
fossil gas and coal sectors as well as indirect emissions and legislative measure to achieve a 
certain reduction in methane emissions via a performance requirement.  

The preferred option for policy area 2 is to impose obligations to mitigate methane emissions 
from oil, gas and coal in the EU energy sector, in terms of leak detection and repair measures 
and  to  ban  venting  and  flaring.  These  will  lead  to  greater  abatement  of  methane  emissions 
compared to a business as usual scenario, with associated environmental and social benefits in 
terms of slowing climate change and reducing air pollution. 

Policy  area  3  contains  options  that  aim  at  reducing  methane  emissions  related  to  imported 
fossil energy.  It  includes options on measuring, reporting and mitigating  methane emissions 
linked  to  EU  fossil  fuel  consumption  but  occurring  outside  the  EU,  including  the  use  of 
diplomatic  action  and  transparency  tools,  mandatory  measuring,  reporting  and  mitigation 
applying to all methane emissions from fossil energy consumed in the EU covering the value 
chain, the establishment of a transparency database on methane emissions and a global high 
methane  emitting  monitoring  tool,  as  well  as  an  obligation  to  achieve  a  certain  amount  of 
methane emissions reduction applying to all fossil energy consumed in the EU covering the 
value chain. 

The  preferred  option  for  policy  area  3  is  to  put  forward  various  instruments  to  improve 
information on methane emission sources from companies exporting fossil energy to the EU 
as well as incentives for countries to reduce their methane emissions. Similarly to policy area 
2, reducing global methane emissions will have environmental and social benefits, for the EU 
in particular in terms of slowing climate change.  

• 

Fundamental rights 

The  initiative  is  fully  in  line  with  Article  37  of  the  Charter  of  Fundamental  Rights  of  
the  European  Union,  which requires that a high level of environmental  protection and the 
improvement of the quality of the environment must be  integrated  into  the  policies  of  the  
Union  and  ensured  in  accordance  with  the  principle  of sustainable development. 

4. 

BUDGETARY IMPLICATIONS 

The  proposal  includes  a  number  of  requirements  with  budgetary  implications.  First,  the 
requirement  for  the  European  Union  Agency  for  the  Cooperation  of  Energy  Regulators 
(ACER)  to  establish  and  make  publicly  available  a  set  of  indicators  and  corresponding 

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reference values for the comparison of unit investment costs linked to measurement, reporting 
and abatement of methane emissions for comparable projects, once every three years. While 
so far ACER has not dealt with costs of network operators due to measurement, reporting and 
abatement  of  methane  emissions,  the  additional  tasks  and  their  workload  for  ACER  are 
estimated to be sufficiently covered by 1 additional FTE. 

Second,  the  requirement  for  the  Union  to  establish  and  maintain  a  methane  transparency 
platform including information on imports of fossil energy into the Union, with updates to be 
provided every quarter, as well as to establish a global methane monitoring tool that regularly 
publishes the results  of aerial  monitoring of large emitters of methane from  energy sources, 
with  updates  to  be  provided  every  month.  The  additional  tasks  and  their  workload  for  the 
Commission are estimated to require 2 extra full-time officials. 

Section  3  of  the  Legislative  Financial  Statement  outlines  the  proposal’s  budgetary 
implications and the human and administrative resources required. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

EU climate and energy legislation provides a comprehensive framework to  achieve progress 
towards  EU  targets,  and  to  track  that  progress,  to  which  this  proposal  will  contribute.  The 
overarching  framework  is  provided  by  the  European  Climate  Law  and  a  detailed  integrated 
monitoring and reporting framework is provided by the Regulation on the Governance of the 
Energy Union  and  Climate Action. Data  collected in  the context  of that  Regulation is  to  be 
made  publicly  accessible  on  an  e-platform,  including  indicators  for  monitoring  progress 
towards the Union’s energy and climate objectives. 

Member  States  national  policies  and  measures  to  achieve  their  targets  under  the  Effort 
Sharing Regulation are checked by the Commission every five years. The implementation and 
effectiveness of the provisions contained in the proposal will therefore be also tracked under 
the target achievement under the ESR. The established control mechanisms for the quality of 
national  submissions  will  also  allow  an  evaluation  of  the  effectiveness  of  the  provisions  of 
this proposal in achieving improvements in data accuracy. In this context, the Regulation on 
the  Governance  of  the  Energy  Union  and  Climate  Action  sets  out  the  requirements  for 
national and Union inventory systems for GHG emissions, policies, measures and projections, 
calling  for  their  continuous  improvement.  The  establishment  of  such  systems  is  required 
internationally  and  is  meant  to  support  the  implementation  of  national  energy  and  climate 
plans with regard to the decarbonisation dimension. 

Methane  emissions  are  increasingly  subject  to  public  attention,  including  scientific  and 
stakeholder campaigns to detect and quantify emissions. Supported by increasing spatial and 
temporal resolution of satellite data, such public scrutiny is a valuable resource in monitoring 
the impact of the proposal and identifying shortcomings in implementation.  

As  regards  monitoring  and  evaluation  of  the  obligations  set  out  in  this  proposal,  the  main 
responsibility  in  ensuring  application  of  the  provisions  will  lie  with  the  national  competent 
authorities. With respect to emissions data verification, this proposal provides for the role of 
independent  accredited  verifiers.  The  International  Methane  Emission  Observatory11  will 
provide additional scrutiny of submitted methane emissions data, including the possibility to 
cross-reference them with other sources such as satellite imaging and products. 

11 

https://www.unep.org/explore-topics/energy/what-we-do/international-methane-emissions-observatory  

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The  Commission  will  monitor  the  implementation  of  the  legal  act,  through  checking  the 
correct  application  of  the  measures  by  the  obligated  parties  and  if  necessary  taking 
enforcement  action.  This  proposal  includes  a  review  clause  whereby  the  Commission  will 
submit a report on the evaluation and review of the Regulation. 

• 

Detailed explanation of the specific provisions of the proposal 

The proposed regulation consists of six chapters comprising 35 articles. 

Chapter 1 – General provisions 
This  chapter  sets  out  the  scope  and  the  main  terms  used  in  the  proposed  regulation.  It  also 
includes  a  provision  recognising  the  costs  of  network  operators  in  implementing  the 
Regulation. 

Chapter 2 – Competent authorities and independent verification 
This  chapter  lays  down  the  compliance  provisions  of  the  Regulation,  in  addition  to  the 
penalties provisions in Chapter 6. It sets out the tasks of competent authorities, in particular 
the  rules  concerning  inspections  and  complaints,  as  well  as  the  role  and  procedures  for 
independent  accredited  verifiers  with  respect  to  verification  of  methane  emissions  data 
reported by operators. 

Chapter 3 – Methane emissions in the oil and gas sectors 
This  chapter  lays  down  the  obligations  of  operators  and  Member  States  with  respect  to 
measurement  and  reporting  of  methane  emissions  data,  as  well  as  obligations  for  the 
abatement of methane emissions in the relevant sites.  

Chapter 4 – Methane emissions in the coal sector 
This chapter is divided in three sections to cover the following: monitoring and reporting of 
methane  emissions  in  operating  mines;  mitigation  of  methane  emissions  in  operating 
underground mines and methane emissions in closed and abandoned underground mines. 
Each  section  lays  down  the  obligations  of  operators  and  Member  States  with  respect  to 
measurement  and  reporting  of  methane  emissions  data,  as  well  as  obligations  for  the 
abatement of methane emissions in the relevant sites.  

Chapter 5 – Methane emissions occurring outside the Union 
This  chapter  introduces  transparency  tools  for  methane  emissions  occurring  outside  the 
Union:  an  information  obligation  by  importers  of  fossil  fuels  with  regards  to  methane 
emissions,  a  transparency  list  of  Union  companies  and  countries  and  companies  exporting 
fossil energy to the Union, including information on their international reporting obligations 
with  respect  to  methane  emissions  and  a  global  monitoring  tool  to  divulge  the  magnitude, 
recurrence and location of methane emitters globally. 
In  addition,  to  account  for  imports  of  fossil  energy  into  the  Union,  the  chapter  sets  out 
importer  information  requirements,  as  well  as  the  Commission’s  prerogative  to  submit 
amending  legislative  proposals  to  impose  more  stringent  measures  on  importers  once  better 
global  methane  emission  data  are  available  and  ensuring  compliance  with  the  applicable 
international obligations of the Union. 

Chapter 6 – Final provisions 
This  chapter  provides  in  particular  for  a  system  of  penalties:  while  recognising  that 
establishing penalties is a national competence, it sets out guiding principles for penalties, in 
particular criteria for setting penalties, the types of infringements to be penalised, criteria on 
maximum ceilings, as well as the possibility to impose periodic penalty payments. 

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It also contains empowerment provisions for the adoption of delegated and implementing acts, 
as well as a review clause. 

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2021/0423 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on methane emissions reduction 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 194(2) 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 Committee12,  
Having regard to the opinion of the Committee of the Regions13, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

 Methane, the main component of natural gas, is second only to carbon dioxide in its 
overall contribution to climate change and is responsible for approximately a third of 
current warming.  

On a molecular level, although methane remains in the atmosphere for a shorter period 
(10 to 12 years) than carbon dioxide (hundreds of years), its greenhouse effect on the 
climate is more significant and it contributes to ozone formation which is a potent air 
pollutant  that  causes  serious  health  problems.  The  amount  of  methane  in  the 
atmosphere globally has risen sharply over the last decade.  

According to recent estimates by the United Nations Environment Programme and the 
Climate and Clean Air Coalition, methane emission reductions of 45% by 2030, based 
on available targeted measures and additional measures in line with the United Nations 
(‘UN’) priority development goals, could avoid 0.3°C of global warming by 2045.  

According to the Union’s greenhouse gas (‘GHG’) inventories data, the energy sector 
is  estimated to  be responsible for 19% of methane emissions within the  Union. This 
does not include methane emissions linked to the Union’s fossil energy consumption 
which are occurring outside the Union.  

The  European  Green  Deal  combines  a  comprehensive  set  of  mutually  reinforcing 
measures and initiatives  aimed at  achieving climate neutrality in  the Union by 2050. 
The European Green Deal Communication14 indicates that the decarbonisation of the 

12 
13 
14 

OJ C , , p. . 
OJ C , , p. . 
COM(2019) 640 final. 

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gas  sector  will  be  facilitated,  including  by  addressing  the  issue  of  energy-related 
methane  emissions.  The  Commission  adopted  an  EU  strategy  to  reduce  methane 
emissions  (‘the  Methane  Strategy’)  in  October  2020  setting  out  measures  to  cut 
methane  emissions  in  the  EU,  including  in  the  energy  sector,  and  internationally.  In 
Regulation (EU) 2021/111915 (‘European Climate Law’), the Union has enshrined into 
legislation the target of economy-wide climate neutrality by 2050 and also established 
a  binding  Union  domestic  reduction  commitment  of  net  greenhouse  gas  emissions 
(emissions after deduction of removals) of at least 55% below 1990 levels by 2030. To 
achieve  that  level  of  GHG  emission  reductions,  methane  emissions  from  the  energy 
sector should decrease by around 58% by 2030 compared to 2020. 

(6)  Methane  emissions  are included in  the scope of  the  Union  greenhouse  gas  reduction 
targets  for  2030  set  out  in  the  European  Climate  Law  and  the  binding  national 
emission  reduction  targets  under  Regulation  (EU)  2018/84216.  However,  there  is 
currently  no  Union  level  legal  framework  setting  out  specific  measures  for  the 
reduction of anthropogenic methane emissions in the energy sector. In addition, whilst 
Directive  2010/7517  on  industrial  emissions  covers  methane  emissions  from  the 
refining of mineral oil and gas, it does not cover other activities in the energy sector. 

(7) 

(8) 

In this context, this Regulation should apply to the reduction of methane emissions in 
oil  and  fossil  gas  upstream  exploration  and  production,  fossil  gas  gathering  and 
processing,  gas  transmission,  distribution,  underground  storage  and  liquid  fossil  gas 
(LNG)  terminals,  as  well  as  to  operating  underground  and  surface  coalmines,  closed 
and abandoned underground coal mines. 

Rules  for  accurate  measurement,  reporting  and  verification  of  methane  emissions  in 
the oil, gas and coal sectors, as well as for the abatement of those emissions, including 
through  leak  detection  and  repair  surveys  and  restrictions  on  venting  and  flaring, 
should  be  addressed  by  an  appropriate  Union  legal  framework.  Such  a  framework 
should contain rules to enhance transparency with regard to fossil energy imports into 
the  Union,  thus  improving  the  incentives  for  a  wider  uptake  of  methane  mitigation 
solutions across the globe. 

(9) 

Compliance with the obligations under this Regulation is likely to require investments 
by regulated operators and the costs associated with such investments should be taken 
into account in tariff setting, subject to efficiency principles. 

(10)  Each  Member  State  should  appoint  at  least  one  competent  authority  to  oversee  that 
operators  effectively  comply  with  the  obligations  laid  down  in  this  Regulation  and 
should notify the Commission  about such appointment and any changes thereof. The 
competent  authorities  appointed  should  take  all  the  necessary  measures  to  ensure 
compliance with the requirements set out in this Regulation. Taking into account the 
cross-border character of energy sector operations and methane emissions, competent 
authorities should cooperate with each other and the Commission. In this context, the 
Commission and the competent authorities of the Member States should form together 

15 

16 

17 

Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing 
the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 
2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021). 
Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding 
annual  greenhouse  gas  emission  reductions  by  Member  States  from  2021  to  2030  contributing  to 
climate  action  to  meet  commitments  under  the  Paris  Agreement  and  amending  Regulation  (EU)  No 
525/2013 (OJ L 156, 19.6.2018). 
Directive  2010/75/EU  of  the  European  Parliament  and  of  the  Council  of  24  November  2010  on 
industrial emissions (integrated pollution prevention and control) (OJ L 334, 17.12.2010). 

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(11) 

(12) 

a  network  of  public  authorities  applying  this  Regulation  to  foster  close  cooperation, 
with  the  necessary  arrangements  for  exchanging  information  and  best  practices  and 
allow for consultations.  

In order to ensure a smooth and effective implementation of the obligations laid down 
in  this  Regulation,  the  Commission  supports  Member  States  through  the  Technical 
Support  Instrument18  providing  tailor-made  technical  expertise  to  design  and 
implement reforms, including those promoting the reduction of methane emissions in 
the  energy  sector.  The  technical  support,  for  example,  involves  strengthening  of 
administrative  capacity,  harmonising  the  legislative  frameworks  and  sharing  of 
relevant best practices. 

In  order  to  ensure  the  performance  of  their  tasks,  operators  should  provide  the 
competent authorities with all assistance necessary. In addition, operators 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.  

(13)  The  main  mechanism  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 
environmental  risk  conducted  by  the  competent  authorities.  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 are carried out in 
accordance  with  this  Regulation.  Where  they  identify  a  serious  breach  of  the 
requirements  of  this  Regulation,  competent  authorities  should  issue  a  notice  of 
remedial  actions  to  be  taken  by  the  operator.  Competent  authorities  should  keep 
records  of  the  inspections  and  the  relevant  information  should  be  made  available  in 
accordance  with  Directive  2003/4/EC  of  the  European  Parliament  and  of  the 
Council19.  

(14) 

In  light  of  the  proximity  of  some  methane  emission  sources  to  urban  or  residential 
areas, natural or legal persons harmed by breaches of this Regulation should be able to 
lodge  duly  substantiated  complaints  with  the  competent  authorities.  Complainants 
should  be  kept  informed  of  the  procedure  and  decisions  taken  and  should  receive  a 
final decision within a reasonable time of lodging the complaint. 

(15)  A  robust  verification  framework  can  improve  the  credibility  of  reported  data.  In 
addition,  the  level  of  detail  and  technical  complexity  of  methane  emissions 
measurements  requires  proper  verification  of  methane  emissions  data  reported  by 
operators  and  mine  operators.  While  self-verification  is  possible,  third  party 
verification ensures greater independence and transparency. In addition, it allows for a 
harmonized 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)  765/2008  of  the  European  Parliament  and  of  the  Council20. 
Independent accredited verifiers should thus ensure that emissions reports prepared by 
operators and mine operators are correct and in compliance with the requirements set 

18 

19 

20 

Regulation  (EU)  2021/240  of  the  European  Parliament  and  of  the  Council  of  10  February  2021 
establishing a Technical Support Instrument (OJ L 57, 18.2.2021). 
Directive  2003/4/EC  of  the  European  Parliament  and  of  the  Council  of  28  January  2003  on  public 
access to environmental information and repealing Council Directive 90/313/EEC (OJ L 41, 14.2.2003). 
Regulation (EC) No 765/2008 of the European Parliament and of the Council of 9 July 2008 setting out 
the  requirements  for  accreditation  and  market  surveillance  relating  to  the  marketing  of  products  and 
repealing Regulation (EEC) No 339/93 (OJ L 218, 13.8.2008). 

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out in this Regulation. They should review the data in the emissions reports to assess 
their reliability, credibility and accuracy against free and publicly available European 
or  international  standards  developed  by  independent  bodies  and  made  applicable  by 
the Commission. The Commission should thus be empowered to adopt delegated acts 
for the purpose of incorporating and setting out the applicability of such European or 
international  standards.  Verifiers  are  separate  from  competent  authorities  and  should 
be independent from the operators and mine operators, who should provide them with 
all  assistance  necessary  to  enable  or  facilitate  the  performance  of  the  verification 
activities,  notably  as  regards  access  to  the  premises  and  the  presentation  of 
documentation or records. 

(16)  The information in the emission reports submitted to the competent authorities should 
be  provided  to  the  Commission  in  view  of  a  verification  role  to  be  attributed  to  the 
International  Methane  Emissions  Observatory  (IMEO),  in  particular  with  regards  to 
methodologies for data aggregation and analysis and verification of methodologies and 
statistical processes employed by companies to quantify their emissions reported data. 
The reference criteria in that respect may include the OGMP standards and guidance 
documents. The information produced by the IMEO should be made available to the 
public  and  the  Commission  should  use  such  information  to  address  any  identified 
shortcomings with regards to the measurement, reporting and verification of methane 
emissions data. 

(17)  The  IMEO  was  set  up  in  October  2020  by  the  Union  in  partnership  with  the  United 
Nations  Environmental  Programme,  the  Climate  and  Clean  Air  Coalition  and  the 
International Energy Agency, and launched at the G20 Summit in October 2021. The 
IMEO  has  been  tasked  with  collecting,  reconciling,  verifying  and  publishing 
anthropogenic  methane  emissions  data  at  a  global  level.  The  IMEO  is  part  of  the 
United  Nations  Environment  Programme,  which  concluded  a  Memorandum  of 
Understanding with the European Union. Its role is crucial for verification of methane 
emissions data in the energy sector and appropriate relations should be established in 
order  to  put  into  effect  the  entrustment  of  verification  tasks.  As  the  IMEO  is  not  a 
Union body and is not subject to Union law, it is essential to provide that IMEO takes 
appropriate  measures  to  ensure  the  protection  of  the  interests  of  the  Union  and  its 
Member States.  

(18)  As  party  to  the  United  Nations  Framework  Convention  on  Climate  Change 
(UNFCCC)  and  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  Intergovernmental  Panel  on  Climate  Change 
(IPCC). 

(19)  Regulation (EU) 2018/1999 of the European Parliament and of the Council21 requires 
Member  States  to  report  greenhouse  gas  inventory  data  to  the  Commission  and  to 
report  their  national  projections.  Pursuant  to  Article  17(2)  of  Regulation  (EU) 
2018/1999 reporting is to be undertaken using UNFCCC reporting guidelines, and is 

21 

Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the 
Governance  of  the  Energy  Union  and  Climate  Action,  amending  Regulations  (EC)  No  663/2009  and 
(EC)  No  715/2009  of  the  European  Parliament  and  of  the  Council,  Directives  94/22/EC,  98/70/EC, 
2009/31/EC,  2009/73/EC, 2010/31/EU, 2012/27/EU  and 2013/30/EU  of  the  European  Parliament  and 
of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 
525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1). 

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often based on default emission factors rather than direct source-level measurements, 
implying uncertainties on the origin, frequency and magnitude of emissions. 

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

(21)  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-specific, technology-specific, region-specific or country-specific emission 
factors,  which  are  often  based  on  measurements,  and  normally  require  more  highly 
disaggregated  activity  data.  Specifically,  tier  2  requires  country-specific,  instead  of 
default,  emission  factors  to  be  used,  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. Progressing from tier 1 to tier 3 represents 
an increase in the certainty of measurements of methane-related emissions22.  

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

(23)  Currently, voluntary industry-led initiatives remain  the principal  course of action for 
methane  emissions  quantification  and  mitigation  in  many  countries.  A  key  energy 
sector  led  initiative  is  the  Oil  and  Gas  Methane  Partnership  (‘OGMP’),  a  voluntary 
initiative  on  measuring  and  reporting  of  methane  emissions  created  in  2014  by  the 
United  Nations  Environmental  Programme  (UNEP)  and  the  Climate  and  Clean  Air 
Coalition  (CCAC),  in  whose  board  the  Commission  is  represented.  The  OGMP 
focuses on establishing best-practices to improve the availability of global information 
on methane emissions quantification and management and to drive mitigation actions 
to reduce methane emissions. To date, over 60 companies have signed up to OGMP, 
covering  30%  of  global  oil  and  gas  production  and  assets  in  five  continents.  The 
OGMP’s  work  on  developing  standards  and  methodologies  involves  governments, 
civil  society  and  business.  The  OGMP  2.0  framework  is  the  latest  iteration  of  a 
dynamic methane emissions standard and it can provide a suitable basis for methane 
emissions standards, based on sound scientific norms. 

(24)  Against  this  background,  it  is  necessary  to  improve  the  measurement  and  quality  of 
reported  data  of  methane  emissions,  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 robust quantification of emissions 
should be ensured, thereby increasing the reliability of reporting as well as the scope 
for appropriate measures for mitigation. 

(25)  For measuring and reporting to be effective, oil and gas companies should be required 
to  measure  and  report  methane  emissions  by  source,  and  to  make  aggregated  data 

22 

IPCC (2019) 2019 Refinement to the 2006 IPCC guidelines for national greenhouse gas inventories.  

EN 

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available  to  Member  States  in  order  for  Member  States  to  be  able  to  improve  the 
accuracy of their inventories reporting. In addition, effective verification of company 
reported  data  is  necessary  and,  to  minimise  the  administrative  burden  for  operators, 
reporting should be organised on an annual basis. 

(26)  This  Regulation  builds  on  the  OGMP  2.0  framework  insofar  as  it  meets  the  criteria 
referred to in Recitals 24 and 25, to contribute towards the  collection of reliable and 
robust data that would form a sufficient basis for monitoring methane emissions and if 
necessary to build additional action to further curb methane emissions.  

(27)  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  generic 
emission factors to be used. OGMP 2.0 level 4 reporting requires direct measurements 
of  source-level  methane  emissions.  It  allows  the  use  of  specific  emission  factors. 
OGMP  2.0  level  5  reporting  requires  the  addition  of  complementary  site-level 
measurements.  In  addition,  the  OGMP  2.0  framework  requires  companies  to  report 
direct measurements of methane emissions within three years of joining OGMP 2.0 for 
operated  assets  and  within  five  years  for  non-operated  assets.    Building  on  the 
approach  taken  in  OGMP  2.0  with  regard  to  source-level  reporting  and  taking  into 
account that a large number of Union companies had already signed up to OGMP 2.0 
in  2021,  Union  operators  should  be  required  to  deliver  direct  source-level 
measurements of their emissions within 24 months for operated assets and within 36 
months  for  non-operating  assets.  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.  As  in  OGMP  2.0,  this  Regulation  requires  site-level  measurements  to 
reconcile source-level measurements. 

(28)  According  to  data  from  the  Union’s  GHG  inventory,  more  than  half  of  all  direct 
energy sector methane emissions is due to unintentional release of emissions into the 
atmosphere.  In  the  case  of  oil  and  gas,  that  represents  the  largest  share  of  methane 
emissions.  

(29)  Unintentional  leaks  of  methane  into  the  atmosphere  can  occur  during  drilling, 
extraction as well as during processing, storage, transmission and distribution to end-
use  consumers.  They  can  also  occur  in  inactive  oil  or  gas  wells.  Some  emissions  
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  or  damage  can  also  cause  leaks  from  the  walls  of  pressurised 
equipment. 

(30)  While venting of methane is typically intentional, resulting from processes or activities 
and devices designed for that purpose, it can also be unintentional, as in the case of a 
malfunction.  

(31) 

In  order  to  reduce  those  emissions,  operators  should  take  all  measures  available  to 
them to minimise methane emissions in their operations.  

(32)  More  specifically,  methane  emissions  from  leaks  are  most  commonly  reduced  by 
methane leak detection and repair (‘LDAR’) surveys, carried out to identify leaks and 
followed by repair of such leaks. Operators should therefore conduct at least periodic 
LDAR  surveys  and  these  should  also  cover  surveying  of  components  that  vent 
methane, to survey for unintentional venting of methane. 

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(33)  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.  This  is  essential  to  allow  innovation  and  the 
development of new LDAR technologies and methods, thus preventing the lock-in of 
technology,  to  the  detriment  of  environmental  protection.  New  technologies  and 
detection  methods  continue  to  emerge  and  Member  States  should  encourage 
innovation in this sector, so that the most accurate and cost-effective methods can be 
adopted. 

(34)  Obligations  on  LDAR  surveys  should  reflect  a  number  of  good  practices.  LDAR 
surveys should be primarily aimed at finding and fixing leaks, rather than quantifying 
them, and those areas with a higher risk of leaks should be checked more frequently; 
the frequency of surveys should be guided not only by the need to repair 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 losses is identified, the competent authorities 
should  be  allowed  to  recommend  a  higher  frequency  of  surveys  for  the  relevant 
components; all leaks irrespective of size should be recorded and monitored, 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  future,  more  advanced  methane 
emissions  detecting  technologies  to  be  used,  the  size  of  methane  loss  at  or  above 
which a repair is warranted should be specified, while allowing operators the choice of 
detection  device.  Where  appropriate,  continuous  monitoring  may  be  used  in  the 
context of this Regulation.   

(35)  Venting  consists  of  the  release  of  uncombusted  methane  into  the  atmosphere  either 
intentionally  from  processes  or  activities  or  devices  designed  to  do  it,  or 
unintentionally in the case of a malfunction. In light of its potent GHG emission effect, 
venting  should  be  banned  except  in  the  case  of  emergencies,  malfunction  or  during 
certain specific events where some venting is unavoidable.  

(36)  Flaring is the controlled combustion of methane for the purpose of disposal in a device 
designed for said combustion. When carried out during the normal production of oil or 
fossil  gas  and  as  a  result  of  insufficient  facilities  or  amenable  geology  to  re-inject 
methane, utilise it on-site, or dispatch it to a market, it is  considered routine flaring. 
Routine  flaring  should  be  banned.  Flaring  should  only  be  permissible  when  it  is  the 
only  alternative  to  venting  and  where  venting  is  not  prohibited.  Venting  is  more 
harmful  to  the  environment  than  flaring  as  the  released  gas  typically  contains  high-
levels of methane, whereas flaring oxidises methane into carbon dioxide. 

(37)  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 admissible. Use of pilot  burners,  which 
give more reliable ignition as they are not affected by wind, should also be required. 

(38)  Re-injection, utilisation on-site or dispatch of the methane to a market should always 
be  preferable  to  flaring  -  and  therefore  venting  -  of  methane.  Operators  that  vent 
should provide proof to  the competent  authorities that  neither re-injection, utilisation 
on-site or dispatch of the methane to a market nor flaring were possible and operators 
that flare should provide proof to the competent authorities that re-injection, utilisation 
on-site or dispatch of the methane to a market was not possible.   

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

(40)  Methane  emissions  from  inactive  oil  and  gas  wells  pose  public  health,  safety  and 
environmental risks. Therefore, monitoring and reporting obligations should still apply 
and  those  wells  and  well  sites  should  be  reclaimed  and  remediated.  In  such  cases, 
Member  States  should  have  a  predominant  role,  in  particular  to  establish  an 
inventories and mitigation plans.  

(41)  EU GHG inventory data shows that coalmine methane emissions 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  methane  emissions,  almost  equal  to  the 
percentage of direct methane emissions from fossil gas and oil combined, of 33%. 

(42)  Currently,  there  is  no  Union-wide  specific  regulations  limiting  methane  emissions 
from  the  coal  sector,  despite  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 GHG emission reporting by Member States and data from underground mines is 
also included in the European Pollutant Release and Transfer Register established by 
Regulation (EC) No 166/200623.  

(43)  Methane  emissions  are  primarily  linked  to  underground  mining  activities,  both  in 
active and abandoned mines24. In active underground 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  the  methane  emissions  occur 
through  ventilation  and  drainage  or  degasification  systems,  which  represent  the  two 
main ways of lowering methane concentrations in a mine’s airways. 

(44)  Once production is halted and a mine is closed or abandoned, it continues to release 
methane, referred to  as  abandoned mine methane (AMM).  These emissions typically 
occur at well-defined point sources, 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 is ceased, methane from non-flooded mines 
continues to be emitted at levels attaining approximately 40% of emissions recorded at 
the  time  of  closure25.  Moreover,  treatment  of  AMM  remains  fragmented  due  to 
different ownership and exploitation rights across the EU. Member States should thus 
establish  inventories  of  closed  and  abandoned  coal  assets  and,  either  them  or  the 
identified responsible party, should be required to install devices for measurement of 
methane emissions.  

(45)  Operating surface coal mines in the Union produce lignite and emit less methane than 
underground coal mines. According to  the Union GHG  inventory, in 2019  operating 

23 

24 

25 

Regulation  (EC)  No  166/2006  of  the  European  Parliament  and  of  the  Council  of  18  January  2006 
concerning the 
establishment of a European Pollutant Release and Transfer Register and amending Council Directives 
91/689/EEC and 96/61/EC (OJ L 33, 4.2.2006) 
(2020)  N.  Kholod  et  al  Global  methane  emissions  from  coal  mining  to  continue  growing  even  with 
declining coal production, Journal of Cleaner Production, Volume 256, 120489 
(2020)  N.  Kholod  et  al  Global  methane  emissions  from  coal  mining  to  continue  growing  even  with 
declining coal production, Journal of Cleaner Production, Volume 256, 120489 

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surface  mines  emitted  166  kilotonnes  compared  to  828  kilotonnes  for  underground 
coal mines26. Measurement of surface coal mine methane emissions is challenging due 
to their diffuse nature over a wide area. Therefore, and despite available technology27, 
emissions  from  surface  mines  are  rarely  measured.  Methane  emissions  from  surface 
mines  can  be  derived  using  basin-specific  coal  emission  factors28  and,  with  greater 
precision,  using  mine-  or  deposit-specific  emission  factors,  since  coal  basins  have 
deposits  with  different  methane-bearing  capacity29.  Emission  factors  can  be  derived 
from measuring gas content of the seams sampled from exploration borehole cores30. 
Mine  operators  should  thus  perform  measurements  of  methane  emissions  in  surface 
coal mines using such emission factors. 

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

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

(48)  Underground  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 coking coal and thermal coal mines should be subject to 
measuring, reporting and verification of methane emissions.   

(49)  For  operating  underground  coal  mines,  mitigation  of  methane  emissions  should  be 
implemented  through  a  phase  out  of  venting  and  flaring.  For  closed  or  abandoned 
underground coal mines, while flooding the mine can prevent methane emissions, this 
is  not  systematically  done  and  has  environmental  risks.  Venting  and  flaring  in  these 
mines  should  also  be  phased  out.  As  geological  constraints  and  environmental 
considerations prevent a one-size-fits-all approach to mitigate methane emissions from 
abandoned  underground  coal  mines31,  Member  States  should  establish  their  own 
mitigation plan, taking into consideration those constraints and the technical feasibility 
of AMM mitigation.  

(50)  Following  a  Commission  proposal,  on  28  June  2021,  the  Council  adopted  the  new 
legal  base  of  the  Research  Fund  for  Coal  and  Steel32  which  foresees  support  for 

26 

27 

28 
29 
30 

31 

32 

Methane emissions for the energy sector in Kilotonnes, disaggregated by emission category source, as 
reported to UNFCC in April 2021 by EEA on behalf of the EU 
Best  Practice  Guidance  for  Effective  Management  of  Coal  Mine  Methane  at  National  Level: 
Monitoring,  Reporting,  Verification  and  Mitigation,  ECE  Energy  Series  No.  71,  UNECE  2021 
(Forthcoming) 
2006 IPCC guidelines for national greenhouse gas inventories. 
Bilans Zasobow Zloz Kopalin, stan na 31.12.2020’, State Geological Surowce mineralne (pgi.gov.pl) 
Best  Practice  Guidance  for  Effective  Management  of  Coal  Mine  Methane  at  National  Level: 
Monitoring,  Reporting,  Verification  and  Mitigation,  ECE  Energy  Series  No.  71,  UNECE  2021 
(Forthcoming) 
Best  Practice  Guidance  for  Effective  Methane  Recovery  and  Use  from  Abandoned  Mines  (UNECE, 
2019) 
Council Decision (EU) 2021/1094 of 28 June 2021 amending Decision 2008/376/EC on the adoption of 
the  Research  Programme  of  the  Research  Fund  for  Coal  and  Steel  and  on  the  multiannual  technical 

EN 

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research and innovation for repurposing of the formerly operating coal mines or coal 
mines  in  the  process  of  closure  and  related  infrastructure  in  line  with  the  overall 
objective  of  moving  away  from  the  coal  and  the  Just  Transition  Mechanism.  In  this 
context,  one  of  the  main  objectives  for  the  new  Research  Fund  for  Coal  and  Steel 
programme  for  the  coming  years  will  be  to  minimise  the  environmental  impacts  of 
coal mines in transition, in particular with regard to methane emissions.  

(51)  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.  There  is  no  precise 
knowledge  on  the  magnitude,  origin  or  nature  of  methane  emissions  linked  to  fossil 
energy consumed in the Union but occurring in third countries.  

(52)  Global  warming  effects  caused  by  methane  emissions  are  cross-border.  Although 
some  fossil  energy  producing  countries  are  beginning  to  act  domestically  to  reduce 
methane  emissions  from  their  energy  sectors,  many  exporters  are  not  subject  to  any 
regulations in their respective domestic markets. Such operators need clear incentives 
to act on their methane emission, hence transparent information on methane emissions 
should be made available to the markets. 

(53)  Currently  there  is  limited  accurate  data  (UNFCCC  Tier  3  or  equivalent)  on 
international  methane  emissions.  Many  fossil  exporting  countries  have  so  far  not 
submitted full inventory data to the UNFCCC. At the same time, there is evidence of 
large  increases  of  methane  emissions  from  oil  and  gas  production  activities  globally 
from 65 to 80 Mt/year in the last 20 years33.  

(54)  As  announced  in  the  Communication  on  the  EU  Methane  Strategy34,  the  Union  is 
committed  to  working  in  cooperation  with  its  energy  partners  and  other  key  fossil 
energy  importing  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,  which 
represents  a  political  commitment  to  reduce  global  methane  emissions  by  30%  by 
2030 (from 2020 levels), launched at the UN Climate Change Conference (COP 26) in 
November  2021  in  Glasgow.  Over  one  hundred  countries  have  committed  their 
support,  representing  nearly  half  of  global  anthropogenic  methane  emissions.  The 
Global Methane Pledge includes a commitment to move towards using best available 
inventory  methodologies  to  quantify  methane  emissions,  with  a  particular  focus  on 
high emission sources.  

(55)  Further,  the  International  Methane  Emissions  Observatory  (IMEO)  will  play  an 
important  and  lead  role  to  increase  transparency  on  global  energy  sector  methane 
emissions. Support for setting up the IMEO was provided by the Council in its January 
2021 conclusions on Climate and Energy Diplomacy35. 

guidelines  for  this  programme,  OJ  L  236/69.  Council  Decision  (EU)  2021/1207  of  19  July  2021 
amending Decision 2003/77/EC laying down multiannual financial guidelines for managing the assets 
of the ECSC in liquidation and, on completion of the liquidation, the Assets of the Research Fund for 
Coal  and  Steel.  Council  Decision  (EU)  2021/1208  of  19  July  2021  amending  Decision  2003/76/EC 
establishing  the  measures  necessary  for  the  implementation  of  the  Protocol,  annexed  to  the  Treaty 
establishing the European Community, on the financial consequences of the expiry of the ECSC Treaty 
and on the Research Fund for Coal and Steel, OJ L 261/54. 
Global Assessment of Oil and Gas Methane 1 Ultra-Emitters; T. Lauvaux, C. Giron, M. Mazzolini, A. 
d’Aspremont, R. Duren, D. Cusworth, D. Shindell, P. Ciais; April 2021. 
COM(2020) 663 final 
5263/21 TI/eb 1 RELEX.1.C 

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33 

34 
35 

EN 

 
                                                                                                                                                         
(56)  The  Commission  will  work  with  the  IMEO  to  set  up  a  ‘Methane  Supply  Index’,  as 
explicitly  referred  to  in  the  Communication  on the  EU  Methane  Strategy36.  It  would 
provide methane emission data from different sources of fossil energy from around the 
globe  -  including  from  source-level  estimations  and  measurements  as  well  as  from 
aerial/satellite  monitoring  -  thereby  empowering  buyers  of  fossil  energy  to  make 
informed purchasing decisions on the basis of the methane emissions of fossil energy 
sources.  

(57) 

In  parallel  to  continuing  its  successful  diplomatic  work  to  achieve  such  global 
commitments,  the  Union  is  further  encouraging  significant  methane  emissions 
abatement  globally,  and  in  particular  in  the  countries  supplying  fossil  energy  to  the 
Union. 

(58)  Therefore,  importers  of  fossil  energy  to  the  Union  should  be  required  to  provide 
Member  States  with  information  on  measures  related  to  measurement,  reporting  and 
mitigation of methane emissions undertaken by exporters, in particular the application 
of  regulatory  or  voluntary  measures  to  control  their  methane  emissions,  including 
measures such as leak detection and repair surveys or measures to control and restrict 
venting and flaring of methane. The levels of measurement and reporting set out in the 
information  requirements  applied  to  importers  correspond  to  the  ones  to  be  required 
from Union operators in this Regulation, as outlined in Recitals 24 to 26 and 46. The 
information  on measures to  control methane emissions is  not  more burdensome than 
that required from Union operators.  

(59)  Member States should communicate that information to the Commission. On the basis 
of that information, the Union should set up and manage a transparency database for 
fossil energy imports into the Union, detailing whether the exporting companies have 
signed up to the OGMP for oil and gas companies and to the extent that it is set up, an 
equivalent,  internationally  or  Union  recognised  standard  for  coal  companies.  Such 
information should demonstrate the degree of commitment of companies in exporting 
countries  to  measure,  report  and  have  verified  their  methane  emissions  according  to 
tier 3 methods of UNFCCC reporting. Such a transparency database would serve as a 
source of information for the purchasing decisions of importers of fossil energy to the 
Union  as  well  as  for  other  stakeholders  and  the  public.  The  transparency  database 
should  also  reflect  the efforts  undertaken  by  companies in  the Union and companies 
exporting  fossil  energy  to  the  Union  to  measure  and  report  as  well  as  reduce  their 
methane emissions. It should also include information on the measurement, reporting 
and mitigation regulatory actions by countries where fossil energy is produced. 

(60) 

In addition, the  Union should put  in  place a global  methane emitter monitoring  tool, 
providing  information  on  the  magnitude,  recurrence  and  location  of  high  methane-
emitting sources. This should further encourage real and demonstrable results from the 
implementation of methane regulations and effective mitigation actions by companies 
in  the  Union  and  companies  supplying  fossil  energy  to  the  Union.  The  tool  should 
pool data from several certified data providers and services, including the Copernicus 
component  of  the  EU  Space  Programme  and  the  IMEO.  The  tool  should  inform  the 
Commission’s bilateral dialogues with the countries concerned to discuss the different 
scenarios envisaged for methane emissions policies and measures. 

(61) 

In  combination,  the  measures  referred  to  in  Recitals  58  to  60  should  enhance 
transparency  for  buyers,  enabling  them  to  make  informed  sourcing  decisions  and 
improve  the  possibility  of  wider  uptake  of  methane  mitigation  solutions  across  the 

36 

COM(2020) 663 final 

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23 

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globe. In addition, they should further incentivise international companies to sign up to 
international methane measurement and reporting standards such as OGMP or to adopt 
effective  measurement,  reporting  and  mitigation  measures.  These  measures  are 
designed as the basis for a stepwise approach to increase the level of stringency of the 
measures applicable to imports. The Commission should thus be empowered to amend 
or  add  to  the  reporting  requirements  of  importers.  Furthermore,  the  Commission 
should  evaluate  the  implementation  of  those  measures  and,  if  it  deems  appropriate, 
submit  proposals  for  review  to  impose  more  stringent  measures  on  importers  and  to 
ensure a comparable level of effectiveness of measures applicable in third countries to 
monitor,  report,  verify  and  mitigate  methane  emissions.  The  evaluation  should  take 
into account the work undertaken by the IMEO, including the Methane Supply Index, 
the transparency database and the global methane emitter monitoring tool. Should the 
Commission  find  it  appropriate  to  increase  the  level  of  stringency  of  the  measures 
applicable  to  imports,  it  is  of  particular  importance  that  the  Commission  carries  out 
appropriate  consultations  during  its  preparatory  work  including  consulting  relevant 
third countries.   

(62)  Member States should ensure that infringements of this Regulation are sanctioned by 
effective, proportionate and dissuasive penalties, which may include fines and periodic 
penalty  payments,  and  take  all  measures  necessary  to  ensure  that  they  are 
implemented.  In  order  to  play  a  significant  deterrent  effect,  penalties  should  be 
adequate to the type of infringement, to the possible advantage for the operator and to 
the  type  and  gravity  of  the  environmental  damage.  When  imposing  penalties,  due 
regard  should  be  given  to  the  nature,  gravity  and  duration  of  the  infringement  in 
question. The imposition of penalties should be proportionate and should comply with 
Union and national law, including with applicable procedural safeguards and with the 
principles of the Charter of fundamental rights. 

(63) 

In order to ensure more consistency, a list of the types of infringements that should be 
subject  to  penalties  should  be  set  out.  In  order  to  facilitate  the  more  consistent 
application  of  penalties,  common  non-exhaustive  and  indicative  criteria  for  the 
application of penalties should be  set out. The deterrent effect of penalties should be 
reinforced by the possibility to publish the information related to the penalties imposed 
by  Member  States,  in  compliance  with  the  data  protection  requirements  set  out  in 
Regulations (EU) 2016/67937 and (EU) 2018/1725 of the European Parliament and the 
Council38. 

(64)  As a result of the provisions requiring investments by regulated operators to be taken 
into  account  in  tariff  setting,  Regulation  (EU)  2019/942  of  the  European  Parliament 
and  of  the  Council39  should  be  amended  to  entrust  ACER  with  the  task  of  making 
available a set of indicators and reference values for the comparison of unit investment 
costs  linked  to  measurement,  reporting  and  abatement  of  methane  emissions  for 
comparable projects.  

37 

38 

39 

Regulation  (EU)  2016/679  of  the  European  Parliament  and  of  the  Council  of  27  April  2016  on  the 
protection of natural persons with regard to the processing of personal data and on the free movement of 
such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, 
p. 1). 
Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the 
protection of natural persons with regard to the  processing of personal data by the Union institutions, 
bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 
45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39). 
Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing a 
European Union Agency for the Cooperation of Energy Regulators (OJ L 158, 14.6.2019). 

EN 

24 

  EN 

 
                                                 
(65) 

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  of  the  Treaty  on  the 
Functioning  of  the  European  Union  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,  as  proved  necessary,  the  power  to  adopt 
acts in accordance with Article 290 of the Treaty on the Functioning of the European 
Union  should  be  delegated  to  the  Commission  to  supplement  this  Regulation  by 
amending or adding to the information to be provided by importers. 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  on 
Better Law-Making of 13 April 2016. 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. 

(66) 

In  order  to  ensure  uniform  conditions  for  implementation,  implementing  powers 
should be conferred on the Commission to adopt detailed rules with regard to common 
formats for reporting, in accordance with Article 291 of the Treaty on the Functioning 
of  the  European  Union.  Those  powers  should  be  exercised  in  accordance  with 
Regulation (EU) No 182/2011 of the European Parliament and of the Council40. 

(67)  Operators  and  competent  authorities  should  be  given  a  reasonable  period  in  order  to 

take the necessary preparatory actions to meet the requirements of this Regulation.  

(68)  Since  the  objective  of  this  Regulation,  namely  the  accurate measurement,  reporting, 
verification  and  the  reduction  of  methane  emissions  in  the  energy  sector,  cannot  be 
achieved by the Member States individually and can therefore, by reason of its scale, 
be better achieved at Union level, the Union may adopt measures, in accordance with 
the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. 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 that objective,  

HAVE ADOPTED THIS REGULATION: 

Chapter 1 

General Provisions 

Article 1 

Subject matter and scope 

This  Regulation  lays  down  rules  for the  accurate measurement,  reporting  and 
1. 
verification  of  methane  emissions in  the  energy  sector  in  the  Union,  as  well  as 

40 

Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for  control by Member States of 
the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 

EN 

25 

  EN 

 
 
                                                 
the abatement of  those  emissions,  including  through  leak  detection  and  repair  surveys  and 
restrictions  on  venting  and  flaring.  This  Regulation  also  lays  down  rules  on tools  ensuring 
transparency of methane emissions from imports of fossil energy into the Union. 

2. 

This Regulation applies to: 

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

(b) gas transmission, distribution, underground storage and liquid gas (LNG) terminals 
operating with fossil and/or renewable (bio-or synthetic) methane; 

(c) operating underground and surface coalmines, closed and abandoned underground 
coal mines. 

This  Regulation  applies  to  methane  emissions  occurring  outside  the  Union  in  what 
3. 
relates to importer information requirements, to the methane transparency database and to the 
methane emitters monitoring tool. 

Article 2 

Definitions 

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

(1) 
‘methane  emissions’  means  all  direct  emissions  occurring  from  all  components  that 
are potential sources of methane emissions, whether as a result of intentional or unintentional 
venting, incomplete combustion in flares or from other components and unintentional leaks;  

(2) 
‘transmission  system  operator’  has  the  meaning  attributed  to  it  by  [Article  2(4)  of 
Directive 2009/73/EC of the European Parliament and of the Council41] [to be adapted as per 
ongoing recast proposal]; 

‘distribution  system  operator’  has  the  meaning  attributed  to  it  by  [Article  2(6)  of 

(3) 
Directive 2009/73/EC] [to be adapted as per ongoing recast proposal]; 

(4) 
‘operator’  means  any  natural  or  legal  person  who  operates  or  controls  an  asset  or, 
where  provided  for  in  national  legislation,  to  whom  decisive  economic  power  over  the 
technical functioning of an asset has been delegated; 

(5) 
‘mine  operator’  means  any  natural  or  legal  person  who  operates  or  controls  a  coal 
mine or, where provided for in national legislation, to whom decisive economic power over 
the technical functioning of a coal mine has been delegated; 

‘verification’ means the activities carried out by a verifier to assess the conformity of 

(6) 
the reports transmitted by the operators and mine operators; 

‘verifier’ means  a legal  person different  from the competent  authorities appointed in 
(7) 
accordance  with  Article  4  of  this  Regulation  which  carries  out  verification  activities  and 
which  is  accredited  by  a  national  accreditation  body  pursuant  to  Regulation  (EC)  No 
765/2008  or  a  natural  person  otherwise  authorised,  without  prejudice  to  Article  5(2)  of  that 
Regulation, at the time a verification statement is issued;  

41 

Directive  2009/73/EC  of  the  European  Parliament  and  of  the  Council  of  13  July  2009  concerning 
common  rules  for  the  internal  market  in  natural  gas  and  repealing  Directive  2003/55/EC  (OJ  L  211, 
14.8.2009, p. 94). 

EN 

26 

  EN 

 
 
                                                 
‘source’  means  a  component  or  a  geological  structure  that  releases  methane  into  the 

(8) 
atmosphere whether intentionally or unintentionally, intermittently or persistently; 

(9) 
‘asset’ means a business or operating unit, which can be composed of several facilities 
or  sites,  including  assets  under  the  operational  control  of  the  operator  (operated  assets)  and 
assets which are not under the operational control of the operator (non-operated assets); 

(10) 
‘emission factor’ means a coefficient that quantifies the emissions or removals of a gas 
per unit activity, which is often based on a sample of measurement data, averaged to develop 
a  representative  rate  of  emission  for  a  given  activity  level  under  a  given  set  of  operating 
conditions;  

(11) 
‘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 
through direct measurements; 

(12) 

‘specific emission factor’ means an emission factor derived from direct measurements; 

‘direct  measurement’ means direct  quantification  of the methane emission at  source-

(13) 
level with a methane measuring device; 

(14) 

‘site-level methane emissions’ means all sources of emissions within an asset; 

‘site-level  measurement’  means  a  top-down  measurement  and  typically  involves  the 
(15) 
use  of  sensors  mounted  on  a  mobile  platform,  such  as  vehicles,  drones,  aircrafts,  boats  and 
satellites or other means to capture a complete overview of emissions across an entire site;  

‘undertaking’ means a natural or legal person carrying out at least one of the following 
(16) 
functions:  upstream  oil  and  fossil  gas  exploitation,  exploration  and  production,  fossil  gas 
gathering  and  processing  and  gas  transmission,  distribution  and  underground  storage, 
including LNG; 

‘leak  detection  and  repair  survey’  means  a  survey  to  identify  sources  of  methane 

(17) 
emissions, including leaks and unintentional venting; 

(18) 
‘venting’  means  the  release  of  uncombusted  methane  into  the  atmosphere  either 
intentionally  from  processes,  activities  or  devices  designed  for  such  a  purpose,  or 
unintentionally in the case of a malfunction or geological constraints; 

‘flaring’ means the controlled combustion of methane for the purpose of disposal in a 

(19) 
device designed for said combustion; 

(20) 
‘emergency’  means  a  temporary,  unexpected,  infrequent  situation  in  which  the 
methane  emission  is  unavoidable  and  necessary  to  prevent  an  immediate  and  substantial 
adverse  impact  on  human  safety,  public  health  or  the  environment,  but  does  not  include 
situations arising from or related to the following events:  

(a) failure of the operator to install appropriate equipment of sufficient capacity for 
the expected or actual rate and pressure of production;  

(b) failure of the operator to limit production where the production rate exceeds the 
capacity  of  the  related  equipment  or  gathering  system,  except  where  the  excess 
production  is  due  to  a  downstream  emergency,  malfunction,  or  unscheduled  repair 
and  lasts  for  no  longer  than  eight  hours  from  the  time  of  notification  of  the 
downstream capacity issue;  

(c) scheduled maintenance; 

(d) operator negligence; 

EN 

27 

  EN 

 
(e) repeated failures, that is to say four or more failures within the preceding 30 days, 
of the same piece of equipment; 

(21) 
‘malfunction’  means  a  sudden,  unavoidable  failure  or  breakdown  of  equipment 
beyond the reasonable control of the operator that substantially disrupts operations but does 
not  include  a  failure  or  breakdown  that  is  caused  entirely  or  in  part  by  poor  maintenance, 
careless operation or other preventable equipment failure or breakdown; 

(22) 
‘routine flaring’ means flaring during the normal production of oil or fossil gas and in 
the absence of sufficient facilities or amenable geology to re-inject methane, utilise it on-site, 
or dispatch it to a market;  

(23) 

‘flare stack’ means a device equipped with a burner used to flare methane; 

‘inactive well’ means an oil or gas well or well site where operations for exploration 

(24) 
or production have ceased for at least one year; 

(25) 

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

‘reclaiming’  means  the  process  of  returning  a  well  or  well  site  to  having  soil  and 

(26) 
vegetation conditions similar to those that existed before it was disturbed; 

(27) 
‘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 or method, including the work 
of preparing the coal to be extracted;  

(28) 
‘operating coal mine’ means a coal mine where the majority of its revenue comes from 
the work of extracting lignite, subbituminous coal, bituminous coal or anthracites, and where 
at least one of the following conditions apply: 

(a) mine development is underway. 

(b) coal has been produced within the last 90 days. 

(c) mine ventilation fans are operative. 

(29) 
‘underground coal mine’ means a coal mine where coal is produced by tunnelling into 
the  earth  to  the  coalbed,  which  is  then  mined  with  underground  mining  equipment  such  as 
cutting machines and continuous, longwall and shortwall mining machines, and transported to 
the surface; 

‘surface  coal  mine’  means  a  coal  mine  where  coal  lies  near  the  surface  and  can  be 

(30) 
extracted by removing the covering layers of rock and soil; 

‘ventilation shaft’ means a vertical passage used to move fresh air underground or to 

(31) 
remove methane and other gases from an underground coal mine; 

‘drainage station’ means a station  collecting methane from  a coal mine  gas  drainage 

(32) 
system;  

(33) 
‘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; 

‘post-mining activities’ are activities carried out after coal has been mined and brought 

(34) 
to the surface, including coal handling, processing, storage, and transport; 

EN 

28 

  EN 

 
‘continuous  measurement’  means  a  measurement  where  the  reading  is  taken  at  least 

(35) 
every minute; 

(36) 
‘ventilation  air  methane’  means  methane  emitted  from  coal  seams  and  other  gas-
bearing strata and which enters the ventilation air and is exhausted from the ventilation shaft; 

‘coal  deposit’  is  an  area  of  the  land  containing  significantly  mineable  quantities  of 
(37) 
coal,  defined  according  to  the  Member  State’s  methodology  on  documenting  geological 
mineral deposits; 

‘closed coal  mine’ means  a coal  mine with  an identified  operator,  owner  or licensee 

(38) 
and closed according to the applicable licensing requirements or other regulations; 

‘abandoned coal mine’ means a coal mine where an operator, owner or licensee cannot 

(39) 
be identified, or that has not been closed in a regulated manner; 

(40) 
‘coking  coal  mine’  means  a  mine  where  at  least  50%  of  the  production  output 
averaged  over  the  last  three  available  years  is  coking  coal,  as  defined  in  Annex  B  of 
Regulation (EC) no 1099/2008 of the European Parliament and of the Council42; 

‘importer’ means a natural or legal person established in the Union who, in the course 

(41) 
of a commercial activity, places fossil energy from a third country on the Union market. 

Article 3 

Costs of regulated operators 

1. 
When fixing or approving transmission or distribution tariffs or the methodologies to 
be  used  by  transmission  system  operators,  distribution  system  operators,  LNG  terminal 
operators or other regulated companies  including where applicable underground  gas storage 
operators,  regulatory  authorities  shall  take  into  account  the  costs  incurred  and  investments 
made  to  comply  with  the  obligations  under  this  Regulation,  insofar  as  they  correspond  to 
those of an efficient and structurally comparable regulated operator. 

Every  three  years,  the  European  Union  Agency  for  the  Cooperation  of  Energy 
2. 
Regulators  (ACER)  shall  establish  and  make  publicly  available  a  set  of  indicators  and 
corresponding  reference  values  for  the  comparison  of  unit  investment  costs  linked  to 
measurement, reporting and abatement of methane emissions for comparable projects. 

42 

Regulation (EC) No 1099/2008 of the European Parliament and of the Council of 22 October 2008 on 
energy statistics (OJ L 304, 14.11.2008, p. 1) 

EN 

29 

  EN 

 
 
 
 
                                                 
Chapter 2 

Competent authorities and independent verification 

Article 4 

Competent authorities 

Each Member State shall designate one or more competent authorities responsible for 

1. 
monitoring and enforcing the application of this Regulation. 

Member States shall notify the Commission of the names and contact details of the competent 
authorities  by  …  [3  months  after  the  date  of  entry  into  force  of  this  Regulation].  Member 
States  shall  notify  the  Commission  without  delay  of  any  changes  to  the  names  or  contact 
details of the competent authorities. 

The Commission shall make a list of the competent authorities publicly available and 

2. 
shall regularly update that list.  

Member States shall ensure that the competent authorities have adequate powers and 

3. 
resources to perform the obligations set out in this Regulation. 

Article 5 

Tasks of the competent authorities 

The  competent  authorities  shall  take  the  necessary  measures  to  ensure  compliance 

1. 
with the requirements set out in this Regulation. 

2. 
Operators  and  mine  operators  shall  provide  the  competent  authorities  with  all 
assistance  necessary  to  enable  or  facilitate  the  performance  of  the  tasks  of  the  competent 
authorities  referred  to  in  this  Regulation,  notably  as  regards  access  to  the  premises  and  the 
presentation of documentation or records. 

3. 
The  competent  authorities  shall  cooperate  with  each  other  and  with  the  Commission 
and as necessary with  authorities of third countries, in  order to  ensure  compliance with  this 
Regulation.  The  Commission  may  set  up  a  network  of  competent  authorities  to  foster 
cooperation, with the necessary arrangements for exchanging information and best practices 
and allow for consultations. 

Where  reports  are  to  be  made  public  in  accordance  with  this  Regulation,  the 
4. 
competent  authorities  shall  make  them  publicly  available  free  of  charge,  on  a  designated 
website and in freely accessible, downloadable and editable format.  

Where information is kept confidential in accordance with Article 4 of Directive 2003/4/EC, 
the competent authorities shall indicate the type of information that has been withheld and the 
reason therefor. 

EN 

30 

  EN 

 
 
 
Article 6 

Inspections 

1. 
The competent authorities shall carry out periodic inspections to check the compliance 
of  operators  or  mine  operators  with  the  requirements  set  out  in  this  Regulation.  The  first 
inspection  shall  be  completed  by  …  [18  months  after  the  date  of  entry  into  force  of  this 
Regulation]. 

2. 
Inspections  shall  include,  where  relevant,  site  checks  or  field  audits  examination  of 
documentation  and  records  that  demonstrate  compliance  with  the  requirements  of  this 
Regulation, methane emissions detection and concentration measurements and any follow-up 
action  undertaken  by  or  on  behalf  of  the  competent  authority  to  check  and  promote 
compliance of sites or facilities with the requirements of this Regulation.  

Where an inspection has identified a serious breach of the requirements of this Regulation, the 
competent authorities shall issue a notice of remedial actions to be undertaken by the operator 
or mine operator, as part of the report referred to in paragraph 5. 

3. 
After  the  first  inspection  referred  to  in  paragraph  1,  the  competent  authorities  shall 
draw up programmes for routine inspections. The period between inspections shall be based 
on an appraisal of the environmental risk and shall not exceed two years. Where an inspection 
has  identified  a  serious  breach  of  the  requirements  of  this  Regulation,  the  subsequent 
inspection shall take place within one year. 

4. 

The competent authorities shall carry out non-routine inspections: 

(a) to investigate substantiated complaints referred to in Article 7 and occurrences of 
non-compliance as soon as possible after the date the competent authorities become 
aware of such complaints or non-compliance;  

(b)  to  ensure  that  leak  repairs  or  replacements  of  components  were  carried  out  in 
accordance with Article 14.  

5. 
 Following each inspection, the competent authorities shall prepare a report describing 
the  legal  basis  for  the  inspection,  the  procedural  steps  followed,  the  relevant  findings  and 
recommendations for the further action by the operator or mine operator. 

The report shall be notified to the operator concerned and made publicly available within two 
months of the date of the inspection. Where the report 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 kept confidential in accordance with Article 4 of 
Directive  2003/4/EC,  the  competent  authorities  shall  indicate  in  the  report  the  type  of 
information that has been withheld and the reason thereof.  

Operators and mine operators shall take all the necessary actions set out in the report 
6. 
referred to in  paragraph  5  within  the period determined by the competent authorities or  any 
other period agreed with the competent authorities. 

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31 

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Article 7 

Complaints lodged with the competent authorities 

1. 
Any natural or legal person which considers that it has suffered injury as a result of a 
breach  of  the  requirements  of  this  Regulation  by  operators  or  mine  operators,  may  lodge  a 
written complaint with the competent authorities. 

The  complaints  shall  be  duly  substantiated  and  contain  sufficient  evidence  of  the 

2. 
alleged breach and of the injury resulting therefrom. 

Where it becomes apparent that the complaint does not provide sufficient evidence to 
3. 
justify  pursuing  an  investigation,  the  competent  authorities  shall  inform  the  complainant  of 
the reasons for their decision not to pursue an investigation. 

Without  prejudice  to  the  rules  applicable  pursuant  to  national  law,  the  competent 
4. 
authorities shall keep the complainant informed of the steps taken in the procedure and, where 
applicable,  inform  them  of  appropriate  alternative  forms  of  redress,  such  as  recourse  to 
national courts or any other national or international complaints procedure. 

5. 
Without prejudice to the rules applicable pursuant to national law and on the basis of 
comparable procedures, the competent authorities shall establish and make publicly available 
indicative periods to take a decision on complaints.  

Article 8 

Verification activities and verification statement 

1. 
Verifiers  shall  assess  the  conformity  of  the  emissions  reports  submitted  to  them  by 
operators  or  mine  operators  in  accordance  with  this  Regulation.  They  shall  assess  the 
conformity of the reports with the requirements laid down this Regulation and review all data 
sources and methodologies used in order to assess their reliability, credibility and accuracy, in 
particular the following points: 

(a) the choice and employment of emission factors; 

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

(c) any risks of inappropriate measuring or reporting; 

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

2. 
In carrying out the verification activities referred to in paragraph 1, verifiers shall use 
free  and  publicly  available  European  or  international  standards  for  methane  emissions 
quantification as made applicable by the Commission in accordance with paragraph 5. Until 
such  date  where  the  applicability  of  those  standards  is  determined  by  the  Commission, 
verifiers  shall  use  existing  European  or  international  standards  for  quantification  and 
verification of greenhouse gas emissions. 

Verifiers may conduct site checks to determine the reliability, credibility and accuracy of the 
data sources and methodologies used. 

3. 
Verifiers shall issue a verification statement verifying the conformity of the emissions 
report and specifying the verification work carried out, once their assessment concludes with 

EN 

32 

  EN 

 
 
reasonable  assurance  that  the  emissions  report  complies  with  the  requirements  of  this 
Regulation.  

The verifiers shall only issue the verification statement where reliable, credible and accurate 
data and information enable the methane emissions to be determined with a reasonable degree 
of certainty and provided the reported data is coherent with the estimated data, complete and 
free of inconsistencies. 

Where  the  assessment  concludes  that  the  emissions  report  does  not  comply  with  the 
requirements  of this  Regulation,  the verifiers  shall inform  the operator or the mine operator 
thereof  and the operator or the mine operator  shall submit a  revised emissions  report to  the 
verifier without delay.  

4. 
Operators  and  mine  operators  shall  provide  the  verifiers  with  all  the  assistance 
necessary  to  enable  or  facilitate  the  performance  of  the  verification  activities,  notably  as 
regards access to the premises and the presentation of documentation or records. 

5. 
The  Commission  shall  be  empowered  to  adopt  delegated  acts  in  accordance  with 
Article 31 to supplement this Regulation by incorporating and setting out the applicability of 
European  or  international  standards  on  methane  emissions  quantification  and  measurement 
for the purposes of this Regulation. 

Article 9 

Independence and accreditation of verifiers 

1. 
Verifiers shall be independent from the operators and mine operators and shall carry 
out  the  activities  required  under  this  Regulation  in  the  public  interest.  For  that  purpose, 
neither the verifiers nor any part of the same legal entity shall be an operator or mine operator, 
the owner of an operator or mine operator, or be owned by them, nor shall the verifiers have 
relations  with  operators  or  mine  operators  that  could  affect  their  independence  and 
impartiality. 

Verifiers shall be accredited by  a national  accreditation body pursuant  to  Regulation 

2. 
(EC) No 765/2008. 

Where no specific provisions concerning the accreditation of verifiers are laid down in 

3. 
this Regulation, the relevant provisions of Regulation (EC) No 765/2008 shall apply. 

Article 10 

International Methane Emissions Observatory 

Provided the interest  of  the Union is protected, the  International  Methane Emissions 
1. 
Observatory shall be attributed a verification role with respect to methane emissions data, in 
particular with regard to the following tasks:   

aggregation  of  methane  emissions  data  in  accordance  with  appropriate 

(a) 
statistical methods; 

verification of methodologies and statistical processes employed by companies 

(b) 
to quantify methane emissions data; 

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

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

(e) 

reporting of findings on major discrepancies between data sources. 

The  Commission  may  submit  methane  emissions  data  to  the  International  Methane 
2. 
Emissions  Observatory,  as  made  available  to  it  by  the  competent  authorities  in  accordance 
with this Regulation. 

The information produced by the International Methane Emissions Observatory shall 

3. 
be made available to the public and the Commission. 

Chapter 3 

Methane emissions in the oil and gas sectors 

Article 11 

Scope 

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

Article 12 

Monitoring and reporting 

By … [12 months from the date of entry into force of this Regulation], operators shall 
1. 
submit  a  report  to  the  competent  authorities  containing  source-level  methane  emissions 
estimated using generic but source-specific emission factors for all sources.  

By … [24 months from the date of entry into force of this Regulation], operators shall 
2. 
also  submit a report to the competent  authorities containing direct  measurements of source-
level methane emissions for operated assets. Reporting at such level may involve the use of 
source-level measurement and sampling as the basis for establishing specific emission factors 
used for emissions estimation.  

3. 
By  …  [36  months  from  the  date  of  entry  into  force  of  this  Regulation]  and  by  30 
March  every  year  thereafter,  operators  shall  submit  a  report  to  the  competent  authorities 
containing  direct  measurements  of  source-level  methane  emissions  for  operated  assets 
referred to in paragraph 2, complemented by measurements of site-level methane emissions, 
thereby allowing assessment and verification of the source-level estimates aggregated by site.  

Before submission to the competent authorities, operators shall ensure that the reports set out 
in  this  paragraph  are  assessed  by  a  verifier  and  include  a  verification  statement  issued  in 
accordance with Articles 8 and 9. 

By … [36 months from the date of entry into force of this Regulation], undertakings 
4. 
established in  the Union shall submit a report to the competent  authorities containing direct 

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measurements of source-level methane emissions for non-operated assets. Reporting at  such 
level  may  involve  the  use  of  source-level  measurement  and  sampling  as  the  basis  for 
establishing specific emission factors used for emissions estimation.  

5. 
By  …  [48  months  from  the  date  of  entry  into  force  of  this  Regulation]  and  by  30 
March every year thereafter, undertakings established in the Union shall submit a report to the 
competent authorities containing direct measurements of source-level methane emissions for 
non-operated  assets  as  set  out  in  paragraph  4,  complemented  by  measurements  of  site-level 
methane emissions, thereby allowing assessment and verification of the source-level estimates 
aggregated by site.  

Before submission to the competent authorities, undertakings shall ensure that the reports set 
out in this paragraph are assessed by a verifier and include a verification statement issued in 
accordance with Articles 8 and 9. 

The  reports  provided  for  in  this  Article  shall  cover  the  last  available  calendar  year 

6. 
period and include at least the following information:  

(a) emission source type and location; 

(b) data per detailed, individual, emission source type; 

(c)  detailed  information  on  the  quantification  methodologies  employed  to  measure 
methane emissions; 

(d) all methane emissions for operated assets; 

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

(f) a list of the entities with operational control of the non-operated assets. 

The Commission shall, by means of implementing acts, lay down a reporting template for the 
reports  under  paragraphs  2,  3,  4  and  5.  Those  implementing  acts  shall  be  adopted  in 
accordance with the procedure referred to in Article 32(2). 

For  site-level  measurements  referred  to  in  paragraphs  3  and  5,  appropriate 

7. 
quantification technologies shall be used which can provide such measurements.  

8. 
In the case of significant discrepancies between the emissions quantified using source-
level methods and those resulting from site-level measurement, additional measurements shall 
be carried out within the same reporting period. 

9. 
Methane emissions measurements for gas infrastructure shall be conducted according 
to  appropriate  European  (CEN)  or  international  (ISO)  standards  for  methane  emissions 
quantification. 

10.  Where information is kept confidential in accordance with Directive (EU) 2016/943 of 
the European Parliament and of the Council43, operators shall indicate in the report the type of 
information that has been withheld and the reason thereof. 

11. 
The competent authorities shall make the reports set out in this Article available to the 
public  and  the  Commission,  within  three  months  from  submission  by  operators  and  in 
accordance with Article 5(4). 

43 

Directive  (EU)  2016/943  of  the  European  Parliament  and  of  the  Council  of  8  June  2016  on  the 
protection  of  undisclosed  know-how  and  business  information  (trade  secrets)  against  their  unlawful 
acquisition, use and disclosure (OJ L 157, 15.6.2016) 

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Article 13 

General mitigation obligation 

Operators  shall  take  all  measures  available  to  them  to  prevent  and  minimise  methane 
emissions in their operations. 

Article 14 

Leak detection and repair 

1. 
By … [3 months from the date of entry into force of this Regulation], operators shall 
submit a leak detection and repair programme to the competent authorities which shall detail 
the  contents  of  the  surveys  to  be  carried  out  in  accordance  with    the  requirements  in  this 
Article.  

The  competent  authorities  may  require  the  operator  to  amend  the  programme  taking  into 
account the requirements of this Regulation. 

2. 
By … [6 months from the date of entry into force of this Regulation], operators shall 
carry out a survey of all relevant components under their responsibility in accordance with the 
leak detection and repair programme referred in paragraph 1.  

Thereafter, leak detection and repair surveys shall be repeated every three months.  

In carrying out the surveys, operators shall use devices that allow detection of loss of 

3. 
methane from components of 500 parts per million or more. 

Operators  shall  repair  or  replace  all  components  found  to  be  emitting  500  parts  per 

4. 
million or more of methane.  

The repair or replacement  of the components referred to in the first subparagraph  shall take 
place immediately after detection, or as soon as possible thereafter but no later than five days 
after detection, provided operators can demonstrate that safety or technical considerations do 
not allow immediate action and provided operators establish a repair and monitoring schedule.  

Safety and technical considerations  that do not allow immediate action, as referred to in the 
second subparagraph, shall be limited to taking into account safety to personnel and humans 
in  proximity,  environmental  impacts,  concentration  of  methane  loss,  accessibility  to 
component,  availability  of 
impact 
considerations may include instances whereby repair could lead to a higher level of methane 
emissions than in the absence of the repair.  

the  component.  Environmental 

replacement  of 

Where  a  system  shutdown  is  required  before  the  repair  or  replacement  can  be  undertaken, 
operators shall minimise the leak within one day of detection and shall repair the leak by the 
end of the next scheduled system shutdown or within a year, whichever is sooner. 

Notwithstanding paragraph 2, operators shall survey components that were found to be 
5. 
emitting 500 parts per million or more of methane during any of the previous surveys as soon 
as  possible  after  the  repair  carried  out  pursuant  to  paragraph  4,  and  no  later  than  15  days 
thereafter to ensure that the repair was successful.  

Notwithstanding  paragraph  2,  operators  shall  survey  components  that  were  found  to  be 
emitting  below  500  parts  per  million  of  methane,  no  later  than  three  months  after  the 
emissions were detected, to check whether the size of loss of methane has changed.   

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Where a higher risk to safety or a higher risk of methane losses is identified, the competent 
authorities  may  recommend  that  surveys  of  the  relevant  components  take  place  more 
frequently.  

6. 
Without prejudice to the reporting obligations pursuant to paragraph 7, operators shall 
record  all  identified  leaks,  irrespective  of  their  size,  and  shall  continually  survey  them  to 
ensure that they are repaired in accordance with paragraph 4. 

Operators  shall  keep  the  record  for  at  least  ten  years  and  shall  provide  that  information  to 
competent authorities upon their request.  

7. 
Within one month after each survey, operators shall submit a report with the results of 
the survey and a repair and monitoring schedule to the competent authorities of the Member 
State where the relevant assets are located. The report shall include at least the elements set 
out in Annex I. 

The  competent  authorities  may  require  the  operator  to  amend  the  report  or  the  repair  and 
monitoring schedule taking into account the requirements of this Regulation.  

8. 
Operators may delegate  any of the tasks set out in this Article. Delegated tasks  shall 
not affect the responsibility of operators and shall not impact the effectiveness of supervision 
by the competent authorities. 

Member  States  shall  ensure  that  certification,  accreditation  schemes  or  equivalent 
9. 
qualification  schemes,  including  suitable  training  programmes,  are  available  for  service 
providers with respect to the surveys.  

Article 15 

Limits to venting and flaring 

Venting  shall  be  prohibited  except  in  the  circumstances  provided  for  this  Article. 

1. 
Routine flaring shall be prohibited. 

2. 

Venting shall only be allowed in the following situations: 

(a) in case of an emergency or malfunction; and 

(b) where unavoidable and strictly necessary for the operation, repair, maintenance or 
testing of components or equipment and subject to the reporting obligations set out in 
Article 16.  

Venting under point (b) of paragraph 2 shall include the following specific situations 

3. 
where venting cannot be completely eliminated: 

(a)  during  normal  operations  of  certain  components,  provided  that  the  equipment 
meets all the specified equipment standards and it is properly maintained and regularly 
inspected to minimise methane losses;  

(b) to unload or clean-up liquid holdup in a well to atmospheric pressure;  

(c) during gauging or sampling a storage tank or other low-pressure vessel; 

(d)  during  loading  out  liquids  from  a  storage  tank  or  other  low-pressure  vessel  to  a 
transport vehicle in compliance with applicable standards; 

(e)  during  repair  and  maintenance,  including  blowing  down  and  depressurizing 
equipment to perform repair and maintenance; 

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(f) during a bradenhead test; 

(g) during a packer leakage test; 

(h) during a production test lasting less than 24 hours; 

(i)  where  methane  does  not  meet  the  gathering  pipeline  specifications,  provided  the 
operator  analyses  methane  samples  twice  per  week  to  determine  whether  the 
specifications have been achieved and routes the methane into a gathering pipeline as 
soon as the pipeline specifications are met; 

(j)  during  commissioning  of  pipelines,  equipment  or  facilities,  only  for  as  long  as 
necessary to purge introduced impurities from the pipeline or equipment; 

(k) during pigging, blow-down to repair or purging a gathering pipeline for repair or 
maintenance,  and  only  where  the  gas  cannot  be  contained  or  redirected  into  an 
unaffected portion of the pipeline. 

4. 
Where  venting  is  allowed  pursuant  to  paragraphs  2  and  3,  operators  shall  vent  only 
where  flaring  is  not  technically  feasible  or  risks  endangering  safety  of  operations  or 
personnel.  In  such  a  situation,  as  part  of  the  reporting  obligations  set  out  in  Article  16, 
operators  shall  demonstrate  to  the  competent  authorities  the  necessity  to  opt  for  venting 
instead of flaring.  

5. 
Flaring shall only be allowed where either re-injection, utilisation on-site or dispatch 
of the methane to a market are not feasible for reasons other than economic considerations. In 
such  a  situation,  as  part  of  the  reporting  obligations  set  out  in  Article  16,  operators  shall 
demonstrate to the competent authorities the necessity to opt for flaring instead of either re-
injection, utilisation on-site or dispatch of the methane to a market. 

Article 16 

Reporting of venting and flaring events  

1. 

Operators shall notify the competent authorities of venting and flaring events: 

(a) caused by an emergency or a malfunction;  

(b) lasting a total of 8 hours or more within a 24 hour period from a single event.  

The  notification  referred  to  in  the  first  subparagraph  shall  be  made  without  delay  after  the 
event and at the latest within 48 hours from the start of the event or the moment the operator 
became aware of it. 

2. 
Operators shall submit to the competent authorities quarterly reports of all venting and 
flaring referred to in paragraph 1 and in Article 15 in accordance with the elements set out in 
Annex II. 

The competent authorities shall make the reports set out in this Article available to the 

3. 
public and the Commission annually and in accordance with Article 5(4). 

Article 17 

Requirements for flaring standards  

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1. 
Where  a  facility  is  built,  replaced  or  refurbished,  or  where  new  flare  stacks  or  other 
combustion  devices  are  installed,  operators  shall  install  only  combustion  devices  with  an 
auto-igniter  or  continuous  pilot  and  a  complete  destruction  removal  efficiency  for 
hydrocarbons.  

 Operators shall ensure that all flare stacks or other combustion devices  comply with 
2. 
the  requirements  of  paragraph  1  by  …  [12  months  from  the  date  of  entry  into  force  of  this 
Regulation].  

Operators  shall  conduct  weekly  inspections  of  flare  stacks  in  accordance  with  the 

3. 
elements set out in Annex III. 

Article 18 

Inactive wells 

By … [12 months from the date of entry into force of this Regulation], Member States 
1. 
shall establish and make publicly available an inventory of all inactive wells on their territory 
or under their jurisdiction, including at least the elements set out in Annex IV.  

By  …  [18  months  of  the  date  of  entry  into  force  of  this  Regulation],  equipment  for 

 2. 
measurement of methane emissions shall be installed on all inactive wells.  

3. 
Reports containing the measurements referred to in paragraph 2 shall be submitted to 
the competent authorities by … [24 months of the date of entry into force of this Regulation] 
and  by  30  March  every  year  thereafter  and  cover  the  last  available  calendar  year.  Before 
submission to the competent authorities, the reports set out in this paragraph shall be assessed 
by a verifier and include a verification statement issued in accordance with Articles 8 and 9. 

4. 
The competent authorities shall make the reports set out in this Article available to the 
public  and  the  Commission,  within  three  months  from  submission  by  operators  and  in 
accordance with Article 5(4). 

5. 
Member  States  shall  be  responsible  for  fulfilling  the  obligations  laid  down  in 
paragraphs  2  and  3,  except  where  a  responsible  party  can  be  identified,  in  which  case  that 
party shall bear responsibility. 

Member  States  shall  develop  and  implement  a  mitigation  plan  to  remediate,  reclaim 

6. 
and permanently plug inactive wells located in their territory.   

Mitigation plans shall use the inventories referred to in paragraph 1 to determine priority for 
activities including: 

(a) remediating, reclaiming and permanently plugging wells; 

(b) reclaiming related access roads; 

(c) restoring land, water and habitat impacted by wells and the prior operations; 

(d)  yearly  checks  to  ensure  plugged  wells  are  no  longer  a  source  of  methane 

emissions.  

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Chapter 4 

Methane emissions in the coal sector 

SECTION I  

MONITORING AND REPORTING IN OPERATING MINES 

Article 19 

Scope 

1. 

This Section applies to operating underground and surface coal mines. 

Methane  emissions  from  operating  underground  coal  mines  include  the  following 

2. 
emissions: 

(a) 

methane emissions from all ventilation shafts in use by the mine operator; 

(b) 
methane  emissions  from  drainage  stations  and  from  the  methane  drainage 
system,  whether  occurring  as  a  result  of  intentional  or  unintentional  venting,  or 
incomplete combustion in flares; 

(c) 

methane emissions occurring during post-mining activities. 

Methane  emissions  from  operating  surface  coal  mines  include  the  following 

3. 
emissions:  

(a) 

(b) 

methane emissions occurring at the coal mine during the mining process; 

methane emissions occurring during post-mining activities. 

Article 20 

Monitoring and reporting 

For underground coal mines, mine operators shall perform continuous ventilation air 
1. 
methane emissions measurement and quantification on all exhaust ventilation shafts used by 
the  mine  operator,  using  apparatus  with  a  methane  concentration  sensitivity  threshold  of  at 
least 100 parts per million. They shall also take monthly sample-based measurements.  

Drainage  stations  operators  shall  perform  continuous  measurements  of  volumes  of 

2. 
vented and flared methane, regardless of the reasons for such venting and flaring activity. 

As  regards  surface  coal  mines,  mine  operators  shall  use  deposit-specific  coal  mine 
3. 
methane  emission  factors  to  quantify  emissions  resulting  from  mining  operations.  Mine 
operators  shall  establish  those  emission  factors  on  a  quarterly  basis,  in  accordance  with 
appropriate  scientific  standards  and  take  into  account  methane  emissions  from  surrounding 
strata. 

The  measurements  and  quantification  referred  to  in  paragraphs  1  to  3  shall  be 

4.  
undertaken in accordance with an appropriate European or international standards. 

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As  regards  continuous  measurements  referred  to  in  paragraphs  1  and  2,  where  part  of  the 
measuring  equipment  is  not  operating  for  a  period,  readings  taken  during  periods  when  the 
equipment was operating may be used to estimate data on a pro rata basis for the period that 
the equipment was not operating.  

The  equipment  used  for  continuous  measurements  referred  to  in  paragraphs  1  and  2  shall 
operate  for  more  than  90%  of  the  period  for  which  it  is  used  to  monitor  an  emission, 
excluding downtime taken for re-calibration. 

Mine  operators  shall  estimate  coal  post-mining  emissions  using  coal  post-mining 
5. 
emission factors, updated annually, based on deposit-specific coal samples and in accordance 
with appropriate scientific standards. 

6. 
By… [12 months from the date of entry into force of this Regulation] and by 30 March 
every  year thereafter, mine operators and drainage station  operators shall submit  a  report to 
the  competent  authorities  containing  yearly  source-level  methane  emissions  data  in 
accordance with the provisions of this Article.   

The report shall cover the last available calendar year period and include the elements set out 
in Part 1 of Annex V for operating underground coal mines, Part 2 of Annex V for operating 
surface coal mines and Part 3 of Annex V for drainage stations. 

Before  submission  to  the  competent  authorities,  mine  operators  and  drainage  stations 
operators shall ensure that the reports set out in this paragraph are assessed by a verifier and 
include a verification statement issued in accordance with Articles 8 and 9. 

7. 
The competent authorities shall make the reports set out in this Article available to the 
public  and  the  Commission,  within  three  months  from  submission  by  operators  and  in 
accordance with Article 5(4). 

SECTION II 

MITIGATION OF METHANE EMISSIONS FROM OPERATING UNDERGROUND COAL 
MINES 

Article 21 

Scope 

This  Section  applies  to  the  methane  emissions  from  underground  coal  mines  referred  to  in 
Article 19(2). 

Article 22 

Mitigation measures 

1. 
Venting  and  flaring  of  methane  from  drainage  stations  shall  be  prohibited  from  [1 
January 2025], except in the case of an emergency, a malfunction or where unavoidable and 
strictly necessary for maintenance. In such cases, drainage station operators shall vent only if 
flaring  is  not  technically  feasible  or  risks  endangering  safety  of  operations  or  personnel.  In 
such  a  situation,  as  part  of  the  reporting  obligations  set  out  in  Article  23,  drainage  station 

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operators  shall  demonstrate  to  the  competent  authorities  the  necessity  to  opt  for  venting 
instead of flaring. 

2. 
Venting  of  methane  through  ventilation  shafts  in  coal  mines  emitting  more  than  0.5 
tonnes of methane/kilotonne of coal mined, other than coking coal mines, shall be prohibited 
from 1 January 2027.  

3. 
By  …  [three  years  from  the  date  of  entry  into  force  of  this  Regulation]  the 
Commission  shall  adopt  a  delegated  act  in  accordance  with  Article  31  to  supplement  this 
Regulation by  setting out restrictions on venting  methane from  ventilation shafts for coking 
coal mines.  

Article 23 

Reporting of venting and flaring events  

From  [1  January  2025],  drainage  station  operators  shall  notify  the  competent 

1. 
authorities of all venting and flaring events: 

(a) caused by an emergency or a malfunction,  

(b) occurring unavoidably due to maintenance of the drainage system. 

That notification shall be made without delay after the event and at the latest within 48 hours 
from the start of event or the moment the operator became aware of it, in accordance with the 
elements set out in Annex VI. 

2. 
The  competent  authorities  shall  make  the  information  submitted  to  them  pursuant  to 
this  Article  available  to  the  public  and  the  Commission  annually  and  in  accordance  with 
Article 5(4). 

SECTION III 

METHANE EMISSIONS FROM CLOSED AND ABANDONED UNDERGROUND COAL MINES 

Article 24 

Scope 

This  Section  applies  to  the  following  methane  emissions  from  abandoned  and  closed 
underground coal mines where coal production has been discontinued:  

(a) methane emissions from all ventilation shafts which continue emitting methane; 

(b)  methane  emissions  from  coal  mining  equipment,  use  of  which  has  been 
discontinued;  

(c) methane emissions  from  other well-defined point emission sources  as  outlined in 
Part 1 of Annex VII. 

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Article 25 

Monitoring and reporting 

1. 
By … [12 months from the date of entry into force of this Regulation] Member States 
shall set up and make publicly available an inventory of all closed coal mines and abandoned 
coal  mines  in  their territory or under their jurisdiction,  in  accordance with  the methodology 
and including at least the elements set out in Part 1 of Annex VII.  

Methane  concentration  measurements  shall  be  taken  in  accordance  with  appropriate 
2. 
scientific  standards  and  at  least  on  an  hourly  basis  from  all  elements  listed  in  part  1(vi)  of 
Annex VII which were found to emit methane.  

From  …  [18  months  from  the  date  of  entry  into  force  of  this  Regulation],  measurement 
equipment  shall  be  installed  on  all  elements  listed  in  point  (v)  of  Part  1  of  Annex  VII  for 
closed coal mines and abandoned coal mines where operations have ceased since … [50 years 
prior to the date of entry into force of this Regulation]. 

The sensitivity threshold of the measurement  equipment used for the measurements referred 
to in paragraph 2 shall be at least 10,000 parts per million. 

The  measurement  equipment  must  operate  for  more  than  90%  of  the  period  for  which  it  is 
used to monitor the emissions, excluding downtime taken for re-calibration. 

3. 
Reports  containing  estimates  of  yearly  source-level  methane  emissions  data  shall  be 
submitted to the competent authorities by … [24 months of the date of entry into force of this 
Regulation] and by 30 March every year thereafter. 

The reports shall cover the last available calendar year and include the elements set out in Part 
3 of Annex VII.  

Before submission to the competent authorities, the reports set out in this paragraph shall be 
assessed by a verifier and include a verification statement issued in accordance with Articles 8 
and 9. 

4. 
Mine  operators  shall  be  responsible  for  the  requirements  referred  to  in  paragraphs  2 
and  3  as  regards  closed  mines.  Member  States  shall  be  responsible  for  the  requirements 
referred to in paragraphs 2 and 3 as regards abandoned mines.  

5. 
The competent authorities shall make the reports set out in this Article available to the 
public  and  the  Commission,  within  three  months  from  submission  by  operators  and  in 
accordance with Article 5(4). 

Article 26 

Mitigation measures 

On the basis of the inventory referred to  in  Article  25, Member States  shall  develop 

1. 
and implement a mitigation plan to address methane emissions from abandoned coal mines. 

The  mitigation  plan  shall  be  submitted  to  competent  authorities  by  …  [36  months  from  the 
date of entry into force of this Regulation] and include at least the elements set out in Part 4 of 
Annex VII. 

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2. 
Venting  and  flaring  from  equipment  referred  to  in  Article  25(2)  shall  be  prohibited 
from  1  January  2030,  unless  utilisation  or  mitigation  is  not  technically  feasible  or  risks 
endangering environmental safety or safety of operations or personnel. In such a situation, as 
part of the reporting obligations set out in Article 25, mine operators or Member States shall 
demonstrate the necessity to opt for venting or flaring instead of utilisation or mitigation. 

Chapter 5 

Methane emissions occurring outside the Union 

Article 27 

Importer requirements 

1. 
By  …  [9  months  from  the  date  of  entry  into  force  of  the  Regulation]  and  by  31 
December every year thereafter, importers shall provide the information set out in Annex VIII 
to the competent authorities of the importing Member State. 

The Commission shall be empowered to adopt delegated acts in accordance with Article 31 to 
supplement  this  Regulation  by  amending  or  adding  to  the  information  to  be  provided  by 
importers. 

2. 
By … [12 months from the date of entry into force of the Regulation] and by 30 June 
every  year  thereafter,  Member  States  shall  submit  to  the  Commission  the  information 
provided to them by importers.  

The Commission shall make the information available in accordance with Article 28. 

By 31 December 2025, or earlier if the Commission considers that sufficient evidence 
3. 
is  available,  the  Commission  shall  examine  the  application  of  this  Article,  considering  in 
particular: 

reporting  of  the  available  methane  emissions  data  collected  in  the  context  of 

(a) 
the global methane monitoring tool referred to in Article 29; 

(b)  methane emission data analysis by the IMEO; 

information on monitoring, reporting, verification and mitigation measures of 
(c) 
operators located outside of the Union and from  whom energy is  imported into the 
Union; and  

security of supply and the level playing field implications in case of possible 
(d) 
additional  obligations,  including  mandatory  measures  such  as  methane  emission 
standards or targets, taking into account the oil, gas and coal sectors separately. 

Where  appropriate  and  based  on  the  necessary  evidence  to  secure  full  compliance  with  the 
applicable international obligations of the Union, the Commission shall propose amendments 
to  this  Regulation  to  strengthen  the  requirements  applicable  to  importers  with  the  view  to 
ensure  a  comparable  level  of  effectiveness  with  respect  to  measurement,  reporting  and 
verification and mitigation of energy sector methane emissions. 

Article 28 

Methane transparency database 

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1. 
By … [18 months after the date of entry into force of the Regulation] the Commission 
shall  establish  and  maintain  a  methane  transparency  database  containing  the  information 
submitted  to  it  pursuant  to  Article  27  and  Articles  12(11),  16(3),  18(4),  20(7),  23(2)  and 
25(5).  

In addition to the information referred to in paragraph 1, the database shall include the 

2. 
following information: 

(a) 

a list of countries where fossil energy is produced and exported to the Union; 

(b)  

for each country referred in point (a) information about the following points:  

(i)  whether  it  has  mandatory  regulatory  measures  in  place  on  energy  sector 
methane emissions, covering the elements set out in this Regulation regarding 
measurement,  reporting  and  verification  and  mitigation  of  energy  sector 
methane emissions; 

(ii) whether it has signed the Paris Agreement on climate change; 

(iii)  whether  it  is  delivering  national  inventories  in  accordance  with  the 
requirements  of  the  United  Nations  Framework  Convention  on  Climate 
Change, where applicable; 

(iv) whether the national inventories submitted pursuant to the United Nations 
Framework Convention on Climate Change include tier 3 reporting of energy 
methane emissions, where applicable; 

(v)  the  amount  of  energy  sector  methane  emissions  according  to  the  national 
inventories  submitted  pursuant  to  the  United  Nations  Framework  Convention 
on  Climate  Change,  where  applicable,  and  whether  the  data  was  subject  to 
independent verification. 

(vi) the list of companies exporting fossil energy into the Union 

(vii) a list of importers of fossil energy into the Union 

The transparency database shall be available to the public online, free of charge and at 

2. 
least in English.  

This  Article  shall  apply  without  prejudice  to  the  provisions  of  Directive  (EU) 

3. 
2016/943. 

Article 29 

Methane emitters global monitoring tool 

1. 
By … [two years after the date of entry into force of the Regulation], the Commission 
shall establish a global methane monitoring tool based on satellite data and input from several 
certified  data  providers  and  services,  including  the  Copernicus  component  of  the  EU  Space 
Programme.  

The  tool  shall  be  made  available  to  the  public  and  provide  regular  updates  at  least  on  the 
magnitude, recurrence and location of high methane-emitting sources of energy. 

2. 
The  tool  shall  inform  the  Commission’s  bilateral  dialogues  with  respect  to  methane 
emissions policies and measures. Where the tool identifies a new major emission source, the 
Commission shall alert the relevant country with a view to promoting awareness and remedial 
actions. 

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3. 

This Article shall be subject to the provisions of Directive (EU) 2016/943. 

Chapter 6 

Final provisions 

Article 30 

Penalties 

1. 
Member States shall lay down the rules on penalties applicable to infringements of the 
provisions  of  this  Regulation  and  shall  take  all  measures  necessary  to  ensure  that  they  are 
implemented. 

The  penalties  provided  for  must  be  effective,  proportionate  and  dissuasive  and  may 

2.  
include: 

(a) 
fines proportionate to the environmental damage, calculating the level of such fines in 
such  way  as  to  make  sure  that  they  effectively  deprive  those  responsible  of  the  economic 
benefits derived from their infringements and gradually increasing the level of such fines for 
repeated serious infringements; 

(b) 
periodic  penalty  payments  to  compel  operators  to  put  an  end  to  an  infringement, 
comply with a decision ordering remedial actions or corrective measures, supply information 
or submit to an inspection, as applicable. 

Member States shall notify the rules on penalties to the Commission by [3 months from the 
date  of  entry  into  force  of  the  Regulation].  In  addition,  Member  States  shall  notify  any 
subsequent amendment affecting such rules to the Commission without delay. 

3. 

At least the following infringements shall be subject to penalties: 

 failure  of  operators  or  mine  operators  to  provide  the  competent  authorities  or  the 
(a) 
verifiers with the assistance necessary to enable or facilitate the performance of their tasks in 
accordance with this Regulation; 

failure of operators or mine operators to carry out the actions set out in the inspections 

(b) 
report referred to in Article 6; 

(c) 
failure  of  operators  of  mine  operators  to  submit  the  methane  emissions  reports  as 
required  by  this  Regulation,  including  the  verification  statement  issued  by  independent 
verifiers in accordance with Articles 8 and 9; 

failure of operators to carry out a leak detection and repair survey in accordance with 

(d) 
Article 14; 

failure of operators to repair or replace components, to continuous survey components 

(e) 
and to record leaks in accordance with Article 14; 

(f) 

failure of operators to submit a report in accordance with Article 14; 

venting or flaring by operators or mine operators beyond the situations provided for in 

(g) 
Articles 15, 22 and 26, as applicable; 

(h) 

routine flaring by operators; 

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(i) 
failure of operators or mine operators to demonstrate the necessity to opt for venting 
instead  of  flaring  and  to  demonstrate  the  necessity  to  opt  for  flaring  instead  of  either  re-
injection, utilisation on-site or dispatch of the methane to a market, in the case of operators, or 
utilisation or mitigation, in the case of mine operators, in accordance with Articles 15, 22 and 
26; 

failure of operators or mine operators to notify or report on venting and flaring events 

(j) 
in accordance with Articles 16, 23 and 26, as applicable; 

use of flare stacks or combustion devices in breach of the requirements laid down in 

(k) 
Article 17; 

failure of importers to provide the information required in accordance with Article 27 

(l) 
and Annex VIII. 

Member States shall take into account at least the following indicative criteria for the 

4. 
imposition of penalties, as appropriate: 

(a) 

the duration or temporal effects, the nature and the gravity of the infringement; 

any  action taken by the  undertaking,  operator or mine operator  to  timely mitigate or 

(b) 
remedy the damage; 

(c) 

(d) 

the intentional or negligent character of the infringement; 

any previous infringements by the undertaking, operator or mine operator; 

(e) 
the  financial  benefits  gained  or  losses  avoided  directly  or  indirectly  by  the 
undertaking,  operator  or  mine  operator  due  to  the  infringement,  if  the  relevant  data  are 
available; 

(f) 

(g) 

the size of the undertaking, operator or mine operator; 

the degree of cooperation with the authority; 

the  manner  in  which  the  infringement  became  known  to  the  authority,  in  particular 

(h) 
whether, and if so to what extent, the operator timely notified the infringement; 

(i) 

any other aggravating or mitigating factor applicable to the circumstances of the case. 

5. 
Member  States  shall  publish  annually  information  on  the  type  and  the  size  of  the 
penalties  imposed  under  this  Regulation,  the  infringements  and  the  operators  upon  which 
penalties have been imposed. 

Article 31 

Exercise of the delegation 

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 

1. 
conditions laid down in this Article.  

2. 
The power to adopt delegated acts referred to in Articles 8(5), 22(3) and 27(1) shall be 
conferred on the Commission for an indeterminate period of time from … [date of entry into 
force of the Regulation].  

3. 
The delegation of power referred to in Articles 8(5), 22(3) and 27(1) may be revoked 
at any time by the European Parliament or by the Council. A decision to revoke shall put an 
end  to  the  delegation  of  the  power  specified  in  that  decision.  It  shall  take  effect  the  day 
following the publication of the decision in the Official Journal of the European Union or at a 

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later  date  specified  therein.  It  shall  not  affect  the  validity  of  any  delegated  acts  already  in 
force. 

4. 
Before adopting a delegated act, the Commission shall consult experts designated by 
each  Member  State  in  accordance  with  the  principles  laid  down  in  the  Interinstitutional 
Agreement on Better Law-Making of 13 April 2016. 

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 

5. 
the European Parliament and to the Council.  

A  delegated  act  adopted  pursuant  to  Articles  8(5),  22(3)  and  27(1)  shall  enter  into 
6. 
force  only  if  no  objection  has  been  expressed  either  by  the  European  Parliament  or  by  the 
Council within a period of two months of notification of that act to the European Parliament 
and  the  Council  or  if,  before  the  expiry  of  that  period,  the  European  Parliament  and  the 
Council  have  both  informed  the  Commission  that  they  will  not  object.  That  period  shall  be 
extended by two months at the initiative of the European Parliament or of the Council. 

Article 32 

Committee procedure 

1.   The  Commission  shall  be  assisted  by  the  Energy  Union  Committee  established  by 
Article 44 of Regulation (EU) 2018/1999. 

Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 

2. 
shall apply.    

Article 33 

Review 

Every  five  years  the  Commission  shall  submit  a  report  on  the  evaluation  of  this 
1. 
Regulation  to  the  European  Parliament  and  to  the  Council  and  shall,  if  appropriate,  submit 
legislative proposals to amend this Regulation. The reports shall be made public. 

For  the  purpose  of  this  Article,  the  Commission  may  request  information  from 
2. 
Member States and competent authorities and shall take into account notably the information 
provided  by  Member  States  in  their  integrated  National  Energy  and  Climate  Plans,  updates 
thereof  and  in  their  National  Energy  and  Climate  progress  reports  pursuant  to  Regulation 
(EU) 2018/1999. 

Article 34 

Amendments to Regulation (EU) 2019/942 

In Article 15 of Regulation (EU) 2019/942 of the European Parliament and of the Council the 
following paragraph 5 is added: 

“5. Every three years ACER shall establish and make publicly available a set of indicators and 
corresponding  reference  values  for  the  comparison  of  unit  investment  costs  linked  to 
measurement, reporting and abatement of methane emissions for comparable projects. It shall 
issue  recommendations  on  indicators  and  reference  values  for  unit  investment  costs  for 

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complying  with  the  obligations  under  [this  Regulation]  pursuant  to  Article  3  of  [this 
Regulation]”. 

Article 35 

Entry into force 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 'AGENCIES' 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title ohezaf the proposal/initiative 

This present LFS concerns a number of requirements included in the Commission proposal on 
a methane legislative proposal, as follows: 

1. 
The  requirement  for  the  European  Union  Agency  for  the  Cooperation  of  Energy 
Regulators  (ACER)  to  establish  and  make  publicly  available  a  set  of  indicators  and 
corresponding  reference  values  for  the  comparison  of  unit  investment  costs  linked  to 
measurement,  reporting  and  abatement  of  methane  emissions  for  comparable  projects,  once 
every three years.  

The  requirement  for  the  Union  to  establish  and  maintain  a  methane  transparency 
2. 
platform including information on imports of fossil energy into the Union, with updates to be 
provided every quarter. 

The  requirement  for  the  Union  to  establish  a  global  methane  monitoring  tool  that 
3. 
regularly publishes the results of aerial monitoring of large emitters of methane from energy 
sources, with updates to be provided every month. 

1.2. 

Policy area(s) concerned 

Policy area: Energy 

Activity: European Green Deal 

1.3. 

The proposal relates to  

X a new action  
 a new action following a pilot project/preparatory action44  

 the extension of an existing action  

 a merger of one or more actions towards another/a new action  

1.4. 

Objective(s) 

1.4.1.  General objective(s)  

The general objective of the initiative is, in the context of the functioning of the internal market 
for  energy  and  while  ensuring  security  of  supply  in  the  Union,  to  preserve  and  improve  the 
environment  by  reducing methane  emissions  from fossil  energy produced or consumed in the 
EU. This objective contributes to the ‘Fit for 55’ package45, specifically to the greenhouse gas 
emissions  reduction  targets  of  at  least  55%  by  2030  compared  to  1990  as  set  out  by  the 
European Climate Law Regulation and to the EU’s objective of achieving climate neutrality by 
2050.  

1.4.2. 

Specific objective(s)  

To achieve the general objective, three specific objectives are addressed by this initiative:  

44 
45 

As referred to in Article 58(2)(a) or (b) of the Financial Regulation. 
See Annex 5 for interlinkages with other initiatives 

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i. 
Improve  the  accuracy  of  information  on  the  main  sources  of  methane  emissions 
associated  with  energy  produced  and  consumed  within  the  EU.  The  goal  is  to  ensure  the 
availability of asset-level data and robust quantification of emissions, and thereby increase the 
reliability of reporting – including the reporting of GHG inventories data to the UNFCCC – as 
well as the scope for appropriate measures for mitigation. This specific objective creates the 
basis for future improvements on specific objective ii).  

ii. 
Ensure further effective mitigation of methane emissions across the energy supply chain 
in  the  EU.  This  specific  objective  addresses  the  market  failure  leading  to  insufficient 
mitigation of methane emissions by companies. 

iii.  Reduce methane emissions related to fossil energy imported to the EU. As the majority 
of methane emissions linked to fossil energy consumed within the EU occur outside the EU, 
this specific objective seeks to tackle methane emissions in cooperation with partner countries 
and international organisations.  

Requirement  1  is  linked  to  objectives  i  and  ii,  while  requirements  2  and  3  are  linked  to 
objective iii. 

As regards requirement 1, in the proposal, both transmission and distribution system operators 
are  obligated  to  measure,  report  and  abate  methane  emissions  according  to  certain  specific 
requirements. The proposal therefore requires regulatory authorities to  take into account the 
costs incurred and investments made to comply with these obligations included when fixing or 
approving  transmission  or  distribution  tariffs  or  their  methodologies  by  transmission  system 
operators or distribution system operators, insofar as they correspond to those of an efficient 
and structurally comparable network operator. Tasking ACER to establish and make publicly 
available  a  set  of  indicators  and  corresponding  reference  values  for  the  comparison  of  unit 
investment  costs  linked  to  measurement,  reporting  and  abatement  of  methane  emissions  for 
comparable  projects  would  allow  national  regulators  to  derive  and  take  into  account 
appropriate  and  comparable  levels  of  costs  when  fixing  or  approving  transmission  or 
distribution  tariffs.  One  FTE  (AD)  at  ACER  is  expected  to  cover  the  needs  of  collecting, 
analysing and reporting data. 

As  regards  requirements  2,  it  tasks  the  Union  to  set  up  and  manage  a  transparency  list  for 
fossil energy consumed in the Union, informing whether there is regulatory equivalence with 
the  mandatory  requirements  on  measurement,  reporting  and  verification  and  mitigation  of 
energy sector methane emissions under Union law in the country of origin supplying the oil, 
fossil gas or coal to the Union. Furthermore, the transparency list should also explain whether 
operators have signed up to an international standard methane emission and reporting standard 
for oil and gas companies (the Oil and Gas Methane Partnership) and to such an equivalent, 
internationally or Union  recognised standard  for  coal  companies,  when one is  eventually set 
up. One FTE (AD) at DG ENER along with 100,000 EUR/year to subcontract gathering and 
analysis of information would be necessary. 

As  regards  requirement  3,  it  tasks  the  Union  to  put  in  place  a  global  methane  super  emitter 
monitoring  tool,  providing  information  on  the  magnitude,  recurrence  and  location  of  high 
methane-emitting  sources. This  should further  encourage real  and demonstrable results from 
the  implementation  of  equivalent  methane  regulations  and  effective  mitigation  actions  by 
companies supplying fossil energy to the Union. The tool should pool data from the European 
Space Agency’s Copernicus programme as well as other satellites and services that regularly 
publish  the  results  of  aerial  monitoring  of  super  emitters  from  around  the  world.  The  term 
‘super-emitter’ refers to a specific site or facility with disproportionately high-emissions for a 

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site  or  facility  of  that  kind.  One  FTE  (AD)  at  DG  ENER  along  with  200  000  EUR/year  to 
subcontract gathering and analysis of information would be necessary. 

1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

As regards requirement 1, the additional resources will allow the agency to carry out the tasks 
necessary  to  fulfil  its  mandate  under  EU  legislation  as  per  the  requirement  under  this 
legislative  proposal  namely  to  allow  national  regulators  to  derive  and  take  into  account 
appropriate  and  comparable  levels  of  costs  when  fixing  or  approving  transmission  or 
distribution tariffs. 

As regards requirements 2 and 3, these measures in combination would enhance transparency 
for buyers to take informed sourcing decisions and improve the possibility of wider uptake of 
methane  mitigation  solutions  across  the  globe.  In  addition,  they  would  further  incentivise 
international  companies  to  sign  up  to  international  methane  measurement  and  reporting 
standards  such  as  the  Oil  and  Gas  Methane  Partnership  or  to  adopt  similar  measurement, 
reporting and mitigation measures existing in the Union. 

1.4.4. 

Indicators of performance  

Specify the indicators for monitoring progress and achievements. 

Requirement  1:  the  availability  of  estimations  of  appropriate  and  comparable  levels  of  costs 
when fixing or approving transmission or distribution tariffs. 

Requirements 2 and 3: increased fossil buying decisions on the basis of information related to 
methane  emissions  reporting,  abatement  and  existence  of  adequate  methane  regulations  and 
wider uptake of methane measurement, reporting and mitigation across the globe.  

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of 

the implementation of the initiative 

The European Green Deal Communication  indicates that the decarbonisation of the gas sector 
will be facilitated, including by addressing the issue of energy-related methane emissions.  It 
also calls on the EU to engage with third countries on cross-cutting climate and environment 
issues, including via action to reduce methane emissions. In addition, and in response to the 
request expressed in Regulation (EU) 2018/1999 on the Governance of the Energy Union and 
Climate  Action  (the  Governance  Regulation)  ,  the  Commission  adopted  an  EU  strategy  to 
reduce methane emissions (‘the Methane Strategy’) in October 2020.  

The Methane Strategy announces that: 

• 

The Commission will deliver legislative proposals in 2021 on: 

Compulsory  measurement,  reporting,  and  verification  (MRV)  for  all  energy-related 
o 
methane  emissions,  building  on  the  Oil  and  Gas  Methane  Partnership  (OGMP  2.0) 
methodology . 

Obligation  to  improve  leak  detection  and  repair  (LDAR)  of  leaks  on  all  fossil  gas 
o 
infrastructure, as  well as any  other infrastructure that produces, transports or uses fossil gas, 
including as a feedstock. 

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The Commission will consider legislation on eliminating routine venting and flaring in 

• 
the energy sector covering the full supply chain, up to the point of production. 

• 
As  part  of  the  EU’s  diplomatic  and  external  relations  action,  the  Commission  will 
address methane emission reductions in all relevant sectors with partner countries and promote 
global coordination of efforts to address energy-sector methane emissions. 

The  Commission  will  support  the  establishment  of  a  detection-and-alert  process  for 
• 
methane super-emitters using EU satellite capability, and share this information internationally 
through the foreseen international methane emissions observatory. 

1.5.2.  Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g.  coordination 
gains,  legal  certainty,  greater  effectiveness  or  complementarities).  For  the  purposes  of  this 
point 'added value of Union involvement' is the value resulting from Union intervention which 
is additional to the value that would have been otherwise created by Member States alone. 

The  reduction  of  methane  emissions  across  the  European  Union  would  benefit  from  a 
homogeneous policy approach at the EU level given the strong interlinkage between Member 
States through cross-border infrastructure – in this context particularly gas infrastructure – and 
the  integrated  EU  energy  market.  The  impacts  of  measures  aimed  at  methane  measurement 
and mitigation and related effects on innovation, cost-effectiveness, and a level-playing field 
in  maintenance  of  a  well-functioning  internal  market  warrant  coordination  across  Member 
State  borders.  Coordinated  EU  policies  have  a  much  higher  chance  of  leading  to  further 
reductions  in  methane  emissions  in  the  energy  sector.  Coordinated  action  at  the  EU  level 
furthermore facilitates the full consideration of the different capabilities to act among Member 
States and private entities. It also affords operators the benefits of a single regulatory regime, 
facilitating  adherence  and  reducing  administrative  burden  relative  to  the  application  of 
fragmented rules across Member States.  

The EU and its Member States are part of a global oil market in which collective action carries 
more weight vis-à-vis exporters than individual national measures. The EU is also the biggest 
gas import market in the world  and can thus influence global methane emissions through its 
purchasing power, provided a harmonised approach towards such imports. The EU gas market 
allows  for  flexible  and  short-term  (spot)  trading  of  gas.  While  long-term  contracts  with 
specific suppliers still exist, the ‘hydrogen and gas market decarbonisation package’, which is 
part  of  the  Fit-for-55  package,  addresses  such  contracts  and  seeks  to  limit  their  duration  to 
avoid locking-in fossil gas use and to send a signal to decarbonise the gas sector in line with 
the  European  Green  Deal.  Hence,  an  increasing  part  of  imports  may  become  subject  to 
methane emission considerations in purchasing decisions. 

EU-level methane policy adds significant value for international climate action. By working to 
develop a legislation to minimize methane emissions in the energy sector, the EU is sending a 
strong  political  signal  to  external  actors,  increasing  the  awareness  of  the  harmful  effects  of 
methane emissions on the climate. This signal will not only encourage EU partners to address 
the  problem  of  methane  emissions  in  the  energy  sector,  but  also  lead  to  the  creation  of  an 
international  partnership  and  thus  give  the  EU  a  leadership  role  in  addressing  methane 
emissions. 

1.5.3.  The  initiative  is  fully  in  line  with  Article  37  of  the  Charter  of  Fundamental  Rights  of  
the  European  Union,  which requires that a high level of environmental protection and the 
improvement of the quality of the environment must be  integrated  into  the  policies  of  the  

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Union  and  ensured  in  accordance  with  the  principle  of sustainable development.Lessons 
learned from similar experiences in the past 

Not applicable 

1.5.4.  Compatibility  with  the  Multiannual  Financial  Framework  and  possible  synergies  with  other 

appropriate instruments 

This  initiative  is  included  in  the  Commission  work  programme  for  2021  (COM(2020)  690 
final)  under  point  g)  ‘Reducing  methane  emissions  in  the  energy  sector’  of  the  European 
Green  Deal  ‘Fit  For  55’  Package’  and  will  contribute  to  the  greenhouse  gas  emissions 
reduction  targets  of  at  least  55%  by  2030  compared  to  1990  as  set  out  by  the  European 
Climate  Law  Regulation  and  to  the  EU’s  objective  of  achieving  climate  neutrality  by  2050 
also included in the ‘Fit for 55’ Package. 

1.5.5.  Assessment of the different available financing options, including scope for redeployment 

See point 2.2.1 

1.6. 

Duration and financial impact of the proposal/initiative 

 limited duration  

 Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY  

 Financial impact from YYYY to YYYY 

X unlimited duration 

Implementation with a start-up period from YYYY to YYYY, 

followed by full-scale operation. 

1.7.  Management mode(s) planned46  

 Direct management by the Commission through 

 executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

 international organisations and their agencies (to be specified); 

the EIB and the European Investment Fund; 

 bodies referred to in Articles 70 and 71; 

 public law bodies; 

 bodies governed by private law with a public service mission to the extent that they provide 
adequate financial guarantees; 

  bodies  governed  by  the  private  law  of  a  Member  State  that  are  entrusted  with  the 
implementation of a public-private partnership and that provide adequate financial guarantees; 

46 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the  BudgWeb  site: 
https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx. 

EN 

54 

  EN 

 
 
                                                 
  persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP  pursuant  to 
Title V of the TEU, and identified in the relevant basic act. 

Comments 

[…] 

[…] 

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

Concerning Requirement 1: 

According  to  their  financial  regulation,  ACER  has  to  provide,  in  the  context  of  their 
Programming  Document,  an  annual  Work  Programme  including  details  on  resources,  both 
financial and human, per each of the activities carried out. 

The Agency reports monthly to DG ENER on budget execution, including commitments, and 
payments by budget title, and vacancy rates by type of staff. 

In addition, DG ENER is directly represented in the governance bodies of ACER. Through its 
representative  in  the  Administrative  Board,  DG  ENER  will  be  informed  of  the  use  of  the 
budget and the establishment plan at each of their meetings during the year. 

Finally,  also  in  line  with  financial  rules,  the  Agency  is  subject  to  annual  requirements  for 
reporting  on  activities  and  the  use  of  resources  through  the  Administrative  Board  and  its 
Annual Activity Report. 

Concerning Requirements 2 and 3: 

The  tasks  directly  implemented  by  DG  ENER  will  follow  the  annual  cycle  of  planning  and 
monitoring,  as  implemented  in  the  Commission  and  the  executive  agencies,  including 
reporting the results through the Annual Activity Report of DG ENER. 

2.2.  Management and control system(s)  

2.2.1. 

Justification  of  the  management  mode(s),  the  funding  implementation  mechanism(s),  the 
payment modalities and the control strategy proposed 

Concerning Requirement 1: 

Due to its mandate, ACER is best placed to establish expertise related to the implementaiton 
of Requirement #1, as well as to ensure that the regulatory authorities of Member States take 
into  account  its  recommendations  on  indicators  and  reference  values  for  the  comparison  of 
unit investment costs. 

DG  ENER  established  a  control  strategy  for  managing  its  relations  with  ACER,  part  of  the 
2017  Internal  Control  Framework  of  the  Commission.  The  Agency  revised  and  adopted  its 
own Internal Control Framework in December 2018. 

Concerning Requirements 2 and 3: 

The legislative proposal  clearly sets  out  that the  tasks under requirements #2 and #3 will be 
assigned to the Commission, especially considering that (i) the amounts needed to implement 
the methane transparency list and the methane monitoring tool will remain to be clarified as 

EN 

55 

  EN 

 
part of the implementation process and (ii) during implementation DG ENER needs to ensure 
close  coordination  and  support  with  other  mechanisms  established  under  Green  Deal 
initiatives. 

Subject to decision taken during the implementation, these tasks may be carried out internally 
or outsourced to an external service provider, via a public procurement procedure. In the case 
the  tasks  are  procured  from  a  service  provider,  the  procurement  will  be  implemented  under 
direct  management,  in  full  application  of  the  provisions  of  the  Financial  Regulation.  The 
control strategy for procurements in DG ENER includes specific ex-ante legal, operational and 
financial  controls  on  the  procurement  procedure  (review  by  the  advisory  committee  for 
procurement  and contracts) as well as on the signature of contracts.  In addition,  expenditure 
made  to  procure  goods  and  services  is  subject  to  ex  ante  and,  when  necessary,  ex-post  and 
financial controls.   

2.2.2. 

Information  concerning  the  risks  identified  and  the  internal  control  system(s)  set  up  to 
mitigate them 

Concerning Requirement 1: 

Risk  1:  In  order  to  avoid  future  understaffing,  it  is  essential  that  ACER  gets  adequate 
additional resources for tasks stemming from new legislation like this proposal.  

While  so  far  ACER  has  not  dealt  with  costs  of  network  operators  due  to  measurement, 
reporting  and  abatement  of  methane  emissions,  the  additional  tasks  and  their  workload  for 
ACER are estimated to be sufficiently covered by 1 additional FTE. 

Concerning Requirements 2 and 3: 

The main policy and implemenattion risks related to these tasks are 

1) Delay in the development and operation of the methane transparency list and the methane 
monitoring tool 

2) A lack of reliable or sufficient data 

3) Absence of sufficient internal capacity to manage the data and publish the results 

4) Cyber-attacks on the publicly available IT infrastructure 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio of "control costs ÷ 
value of the related funds managed"), and assessment of the expected levels of risk of error (at 
payment & at closure)  

The  allocation  of  additional  tasks  for  the  existing  mandate  of  ACER  is  not  expected  to 
generate  specific  additional  controls  at  the  Agency,  therefore,  the  ratio  of  control  costs  over 
value of funds managed will remain unaltered for ACER. 

Similarly, the tasks assigned for DG ENER will not result in additional controls or change in 
the ratio of control costs. 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy. 

EN 

56 

  EN 

 
 
 
ACER  applies  the  anti-fraud  principles  of  decentralised  EU  Agencies,  in  line  with  the 
Commission approach. 

In March 2019 the Agency adopted a new Anti-Fraud Strategy, repealing Decision 13/2014 of 
the Administrative Board of the Agency. The new strategy, spanning over a three-year period, 
is  based  on  the  following  elements:  an  annual  risks  assessment,  the  prevention  and 
management of conflicts of interest, internal rules on whistleblowing, the policy and procedure 
for the management of sensitive functions, as well as measures related to ethics and integrity. 

DG ENER also adopted a revised Anti-fraud Strategy in 2020. The ENER AFS is based on the 
Comission Antifraud Strategy and a specific risk assessment carried out internally to identify 
the areas most vulnerable to fraud, the controls already in place and the actions necessary to 
improve DG ENER’s capacity to prevent, detect and correct fraud. 

Both  the  ACER  regulation  and  the  contractual  provisions  applicable  to  public  procurement 
ensure  that  audits  and  on-the-spot  checks  can  be  carried  out  by  the  Commission  services, 
including OLAF, using the standard provisions recommended by OLAF. 

3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Heading of 
multiannual 
financial 
framework 

Number  

02 

02 

[02 10 06] 

02 20 04 02 

Type of  
expenditure 

Diff./Non-
diff.47 

Contribution  

from 
EFTA 
countries
48 

from 
candidate 
countries49 

from third 
countries 

within the meaning 
of Article 21(2)(b) 
of the Financial 
Regulation  

Diff./ 

YES 

Diff. 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  

[XX.YY.YY.YY] 

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the meaning 
of Article 21(2)(b) 
of the Financial 
Regulation  

YES/NO  YES/NO  YES/NO 

YES/NO 

47 
48 
49 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

EN 

57 

  EN 

 
 
 
 
 
 
                                                 
3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure on ACER 

Heading of multiannual financial  
framework  

2 

European  Strategic  Investments  -  Agency  for  the  Cooperation  of 
Energy Regulators (ACER) 

EUR  

ACER 

Title 1: 

Title 2: 

Title 3: 

TOTAL appropriations 
for ACER 

Commitments 
Payments 

Commitments 

Payments 

Commitments 

Payments 

Commitments 

Payments 

(1) 

(2) 

(1a) 

(2a) 

(3a) 

(3b) 

=1+1a 
+3a 

=2+2a 

+3b 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

152 000 
152 000 

152 000 
152 000 

152 000 
152 000 

152 000 
152 000 

Year 
2027 

152 000 
152 000 

TOTAL 

760 000 
760 000 

152 000 

152 000 

152 000 

152 000 

152 000 

760 000 

152 000 

152 000 

152 000 

152 000 

152 000 

760 000 

3.2.2. 

Summary of estimated impact on expenditure on DG ENER 

DG ENER 

Operational Expenditure 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

Commitments 

Payments 

(3a) 

(3b) 

300 000 

300 000 

300 000 

300 000 

300 000 

100 000 

300 000 

300 000 

300 000 

500 000 

TOTAL 

1 500 000 

1 500 000 

EN 

58 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL appropriations 
for DG ENER (Not administrative) 

Commitments 

Payments 

=1+1a 
+3a 

=2+2a 

+3b 

300 000 

300 000 

300 000 

300 000 

300 000 

1 500 000 

100  000 

300 000 

300 000 

300 000 

500 000 

1 500 000 

EN 

59 

EN 

 
 
 
 
 
Heading of multiannual financial  
framework  

7 

‘Administrative expenditure’ 

DG: ENER 

 Human Resources  
 Other administrative expenditure  

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

304 000 

304 000 

304 000 

304 000 

304 000 

1 520 000 

TOTAL DG <…….> 

Appropriations  

304 000 

304 000 

304 000 

304 000 

304 000 

1 520 000 

TOTAL appropriations 
under HEADING 7 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

304 000 

304 000 

304 000 

304 000 

304 000 

1 520 000 

TOTAL appropriations  
under HEADINGS 1 to 7 
of the multiannual financial framework  

Commitments 

756 000 

756 000 

756 000 

756 000 

756 000 

3 780 000 

Payments 

556 000 

756 000 

756 000 

756 000 

956 000 

3 780 000 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

EUR 

EUR 

EN 

60 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.  Estimated impact on ACER and DG ENER's appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–   The proposal/initiative requires the use of operational appropriations, as explained below: 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

OUTPUTS 

Commitment appropriations in EUR  

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost 

Total No 

Total 
cost 

Indicate 
objectives and 
outputs  

 

Type
50 

Average 
cost 

SPECIFIC OBJECTIVE No 151… 

- Accurate 
information on 
the main sources 
of methane 
emissions 
associated with 
energy produced 
and consumed 
within the EU 

152 000 

152 000 

152 000 

152 000 

152 000 

152 000 

760 000 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

50 
51 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in point 1.4.2. ‘Specific objective(s)…’ 

EN 

61 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
- Effective 
mitigation of 
methane 
emissions across 
the energy 
supply chain in 
the EU 

252 000 

252 000 

252 000 

252 000 

252 000 

252 000 

1 260 000 

Subtotal for specific objective No 2 

- Reduction of 
methane 
emissions 
related to fossil 
energy imported 
to the EU 

352 000 

352 000 

352 000 

352 000 

352 000 

352 000 

1 760 000 

Subtotal for specific objective No 3 

TOTAL COST 

756 000 

756 000 

756 000 

756 000 

756 000 

3 780 000 

The operational appropriations are needed to outsource work to gather necessary data in a regular and comprehensive 
manner. 

Data is provided until the end of the current MFF, but the activity is expected to have unlimited duration.  

Th 

62 

EN 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.4.  Estimated impact on ACER's human resources  

3.2.4.1.  Summary  

–   The proposal/initiative does not require the use of appropriations of an administrative 

nature  

–    The proposal/initiative requires the use of appropriations of an administrative nature, 

as explained below: 

EUR  

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

152 000 

152 000 

152 000 

152 000 

152 000 

760 000 

Temporary agents (AD 
Grades) 

Temporary 
(AST grades) 

agents 

Contract staff 

Seconded National 
Experts 

TOTAL 

152 000 

152 000 

152 000 

152 000 

152 000 

760 000 

Staff requirements (FTE): 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

1 

1 

1 

1 

1 

1 

Temporary agents (AD 
Grades) 

Temporary 
(AST grades) 

agents 

Contract staff 

Seconded National 
Experts 

TOTAL 

1 

1 

1 

1 

1 

1 

Please indicate the planned recruitment date and adapt the amount accordingly (if recruitment occurs 
in July, only 50 % of the average cost is taken into account) and provide further explanations.  

EN 

63 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.5.  Estimated requirements of human resources for the parent DG 

–    The proposal/initiative does not require the use of human resources.  

–  The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full amounts (or at most to one decimal place) 

Year 
2023 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

2 

2 

2 

2 

2 

 Establishment plan posts (officials and 

temporary staff) 

20 01 02 01 and 20 01 02 02 
(Headquarters and Commission’s 
Representation Offices) 

20 01 02 03 (Delegations) 

01 01 01 01 (Indirect research) 

10 01 05 01 (Direct research) 

 External staff (in Full Time Equivalent 
unit: FTE)52 

20 02 01 (AC, END, INT from the 
‘global envelope’) 

20 02 03 (AC, AL, END, INT and 
JPD in the Delegations) 

Budget 
line(s) 
(specify) 
53 

- at 
Headquarters54 

- in 
Delegations  

01 01 01 02 (AC, END, INT – 
Indirect research) 

10 01 05 02 (AC, END, INT – 
Direct research) 

Other budget lines (specify) 

TOTAL 

2 

2 

2 

2 

2 

The human resources required will be met by staff from the DG who are already assigned to 
management of the action and/or have been redeployed within the DG, together if necessary 
with any additional allocation which may be granted to the managing DG under the annual 
allocation procedure and in the light of budgetary constraints. 

Description of tasks to be carried out: 

52 

53 
54 

AC = Contract Staff; AL = Local Staff; END = Seconded National Expert; INT = agency staff; JPD = 
Junior Professionals in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 
Mainly  for  the  EU  Cohesion  Policy  Funds,  the  European  Agricultural  Fund  for  Rural  Development 
(EAFRD) and the European Maritime Fisheries and Aquaculture Fund (EMFAF).   

EN 

64 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
Officials and temporary staff 

Supervise completeness and quality of data gathering. Analysis of data. 

External staff 

Description  of  the  calculation  of  cost  for  FTE  units  should  be  included  in  the  Annex  V, 
section 3.  

EN 

65 

  EN 

 
 
 
 
 
3.2.6.  Compatibility with the current multiannual financial framework  

–    The proposal/initiative is compatible the current multiannual financial framework. 

–   The  proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

multiannual financial framework. 

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding amounts. 

The  Fit  for  55  initiative  was  not  factored  in  the  calculation  of  MFF  headings.  This  specific 
initiative being new, it will require reprogramming both for the line of the contribution to ACER, 
and the lines that would support additional work within DG ENER.  

 The  proposal/initiative  requires  application  of  the  flexibility  instrument  or  revision  of  the 

multiannual financial framework55. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding amounts. 

[…] 

3.2.7.  Third-party contributions  

–  The proposal/initiative does not provide for co-financing by third parties.  

–  The proposal/initiative provides for the co-financing estimated below: 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary 
to show the duration of the 
impact (see point 1.6) 

Total 

EUR million (to three decimal places) 

Specify  the  co-financing 
body  

TOTAL 
co-financed  

appropriations 

3.3. 

55 

See Articles 12 and 13 of Council  Regulation (EU, Euratom) No 2093/2020 of 17 December 2020 laying down the 
multiannual financial framework for the years 2021 to 2027. 

EN 

66 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.4. 

Estimated impact on revenue  

–   The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

– 

– 

– 

 

 

on own resources  

on other revenue  

        please indicate, if the revenue is assigned to expenditure lines  

Appropriation
s available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

EUR million (to three decimal places) 

Impact of the proposal/initiative56 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show 
the duration of the impact (see point 1.6) 

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected. 

[…] 

Specify the method for calculating the impact on revenue. 

[…] 

56 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. 
gross amounts after deduction of 20 % for collection costs. 

EN 

67 

  EN 

 
 
 
 
 
 
 
 
 
                                                 
ANNEX 
to the LEGISLATIVE FINANCIAL STATEMENT 

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE 
COUNCIL on methane emissions reduction in the energy sector  

Name of the proposal/initiative: 

1. 

2. 

3. 

4. 

4.1. 

4.2. 

NUMBER AND COST OF HUMAN RESOURCES CONSIDERED NECESSARY 

COST OF OTHER ADMINISTRATIVE EXPENDITURE 

TOTAL ADMINISTRATIVE COSTS 

METHODS OF CALCULATION USED FOR ESTIMATING COSTS 

Human resources 

Other administrative expenditure 

This annex must accompany the legislative financial statement when the inter-services consultation is launched. 

The data tables are used as a source for the tables contained in the legislative financial statement. They are strictly 
for internal use within the Commission. 

EN 

68 

  EN 

 
 
 
 
 
 
 
 
 
 
 
1. 

COST OF HUMAN RESOURCES CONSIDERED NECESSARY 

 The proposal/initiative does not require the use of human resources 
X  The proposal/initiative requires the use of human resources, as explained below: 

HEADING 7 
of the multiannual financial 
framework 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

TOTAL 

EUR million (to three decimal places) 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

 Establishment plan posts (officials and temporary staff) 
20 01 02 01 - 
Headquarters and 
Representation offices 

         0,304     2 

AST 

AD 

2 

      0,304    

2 

      0,304    

2 

      0,304    

2 

      0,304    

2 

1,520 

   AD 

AST 

AC 

END 

INT 

AC 

AL  

END 

INT 

JPD 

20 01 02 03 - Union 
Delegations 
 External staff 57 
20 02 01 and 20 02 02 
– External personnel – 
Headquarters 
and 
Representation offices 

20  02  03  –  External 
personnel 
-  Union 
Delegations 

Other HR related 
budget lines (specify) 
Subtotal HR – 
HEADING 7 

2 

         0,304     2 

      0,304    

2 

      0,304    

2 

      0,304    

2 

      0,304    

2 

1,520 

These are new tasks, for which there is currently no staff assigned within DG ENER. The human resources required might be met by staff who have been redeployed within the DG, together if necessary with 
any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints. 

57 

AC = Contract Staff; AL = Local Staff; END = Seconded National Expert; INT= agency staff; JPD= Junior Professionals in Delegations. 

EN 

69 

EN 

 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
                                                 
Outside HEADING 7 
of the multiannual financial 
framework 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

2030 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

01 

01 

Indirect 

 Establishment plan posts (officials and temporary staff)
01 
01 
AD 
Research58 
01 01 01 11 Direct Research 
Other (please specify) 
 External staff 59 

AST 

AC 

END 

INT 

AC 

AL  

END 

INT 

JPD 

AC 

END 

INT 

External  staff 
from 
operational 
appropriations 
(former 
‘BA’ 
lines). 

- at 
Headquarters 

- in Union 
delegations 

01 01 01 02 Indirect Research 
01 01 01 12 Direct research 
Other (please specify)60 

Other budget lines HR related 
(specify) 

Subtotal HR – Outside 
HEADING 7 

Total HR (all MFF 
Headings) 

2 

         0,304     2 

      0,304    

2 

      0,304    

2 

      0,304    

2 

      0,304    

2 

1,520 

These are new tasks, for which there is currently no staff assigned within DG ENER. The human resources required might be met by staff who have been redeployed within the DG, 
together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

Please choose the relevant budget line, or specify another if necessary; in case more budget lines are concerned, staff should be differentiated by each budget line concerned 
AC = Contract Staff; AL = Local Staff; END = Seconded National Expert; INT= agency staff; JPD= Junior Professionals in Delegations. 

Please choose the relevant budget line, or specify another if necessary; in case more budget lines are concerned, staff should be differentiated by each budget line concerned 

70 

EN 

58 
59 

60 

EN 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
                                                 
2. 

COST OF OTHER ADMINISTRATIVE EXPENDITURE 

X  The proposal/initiative does not require the use of administrative appropriations 
 The proposal/initiative requires the use of administrative appropriations, as explained below: 

HEADING 7 
of the multiannual financial framework 

Year N61 

Year N+1 

Year N+2 

Year N+3 

Year N+4 

Year N+5 

Year N+7 

Total 

EUR million (to three decimal places) 

At headquarters or within EU territory: 

20 02 06 01 - Mission and representation expenses 

20 02 06 02 - Conference and meeting costs 
20 02 06 03 - Committees62 
20 02 06 04 Studies and consultations 
20 04 – IT expenditure (corporate)63  
Other budget lines non-HR related (specify where 
necessary) 
In Union delegations 
20 02 07 01 - Missions, conferences and representation 
expenses 
20 02 07 02 - Further training of staff 

20 03 05 – Infrastructure and logistics 
Other budget lines non-HR related (specify where 
necessary) 

Subtotal Other - HEADING 7 
of the multiannual financial framework 

61 

62 
63 

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first year of implementation (for instance: 2021). The same for 
the following years 
Specify the type of committee and the group to which it belongs. 
The opinion of DG DIGIT – IT Investments Team is required (see the Guidelines on Financing of IT, C(2020)6126 final of 10.9.2020, page 7) 

EN 

71 

EN 

 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
                                                 
Outside HEADING 7  
of the multiannual financial framework 

Year N64 

Year N+1 

Year N+2 

Year N+3 

Year N+4 

Year N+5 

Year N+7 

Total 

EUR million (to three decimal places) 

Expenditure on technical and administrative assistance 
(not including external staff) from operational 
appropriations (former 'BA' lines): 

- at Headquarters 

- in Union delegations 

Other management expenditure for research 
Policy IT expenditure on operational programmes65  
Corporate IT expenditure on operational programmes66 
Other budget lines non-HR related (specify where 
necessary) 

Sub-total Other – Outside HEADING 7 
of the multiannual financial framework 

Total Other admin expenditure (all 
MFFHeadings) 

64 

65 
66 

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first year of implementation (for instance: 2021). The same for 
the following years 
The opinion of DG DIGIT – IT Investments Team is required (see the Guidelines on Financing of IT, C(2020)6126 final of 10.9.2020, page 7) 
This item includes local administrative systems and contributions to the co-financing of corporate IT systems (see the Guidelines on Financing of IT, C(2020)6126 final of 
10.9.2020) 

EN 

72 

EN 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
                                                 
3. 

TOTAL ADMINISTRATIVE COSTS (ALL HEADINGS MFF) 

EUR million (to three decimal places) 

Summary 

2023 

2024 

2025 

2026 

2027 

2028 

2029 

Heading 7 - Human Resources 

Heading 7 – Other administrative expenditure 

Sub-total Heading 7 

Outside Heading 7 – Human Resources 

Outside Heading 7 – Other administrative expenditure 

Sub-total Other Headings 

TOTAL 
HEADING 7 and Outside HEADING 7 

0.304 

0.304 

0.304 

0.304 

0.304 

0.304 

0.304 

0.304 

0.304 

0.304 

0.304 

0.304 

0.304 

0.304 

0.304 

TOTAL 

1,520 

1,520 

1,520 

These  are  entirely  new  tasks.  The  administrative  appropriations  required  might  be  met  by  budget  that  might  be  redeployed  within  the  DG,  together  if  necessary  with  any 

additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints. 

EN 

73 

EN 

 
 
 
 
 
 
  
  
  
  
  
  
  
  
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
4. 

METHODS OF CALCULATION USED TO ESTIMATE COSTS 

4.1. 

 Human resources 

This part sets out the method of calculation used to estimate the human resources considered necessary 
(workload assumptions, including specific jobs (Sysper 2 work profiles), staff categories and the corresponding 
average costs) 

HEADING 7 of the multiannual financial framework 

NB: The average costs for each category of staff at Headquarters are available on BudgWeb: 
https://myintracomm.ec.europa.eu/budgweb/EN/pre/legalbasis/Pages/pre-040-020_preparation.aspx 

 Officials and temporary staff 
2 AD posts to monitor the implementation of the Regulation: 

- Supervision of and coordination with ACER 
- Supervise completeness and quality of data gathering.  
- Analysis of data. 
- Set up and manage a transparency list for fossil energy imports into the Union  
- Put in place a global methane super emitter monitoring tool 

The average costs come from the note Ares(2020)7207955. 

 External staff 

Outside HEADING 7 of the multiannual financial framework 

 Only posts financed from the research budget  

 External staff 

4.2. 

Other administrative expenditure 

Give details of the method of calculation used for each budget line  
and in particular the underlying assumptions (e.g. number of meetings per year, average costs, etc.) 

HEADING 7 of the multiannual financial framework 

EN 

74 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outside HEADING 7 of the multiannual financial framework 

EN 

75 

  EN