Methane Regulation

The proposal for a Methane Regulation seeks to address and mitigate emissions of the greenhouse gas known as methane across the EU’s energy sector, tying into the EU’s broader climate objectives. It would be the first EU legislative proposal of its kind, imposing a range of obligations on the oil, gas, and coal sectors in the EU. It sets obligations on energy companies to monitor, report and reduce methane emissions but does not set reduction targets.

Decarbonising EU’s Gas Market: Hydrogen

The legislative proposal seeks to find a middle ground between guaranteeing competition and encouraging private investment through a hybrid regulatory approach (market and non-market mechanisms). Regulatory principles utilised in gas and electricity markets can not be transposed onto hydrogen markets, and cross-subsidisation is not a viable long-term option. Market volatility means higher or possibly inaccessible costs to consumers. The proposal seeks to address this by adopting an integrated EU-wide approach to storage.

Categories EU - Policies

What Is The UK’s Net Zero Strategy?

The UK’s net zero strategy builds upon the Climate Change Act of 2008 and the 2020 Ten Point Action Plan The UK sets an indicative delivery pathway, aligned with carbon budget 6 (2033-2037), to achieve Net Zero by 2050 The strategy outlines how the UK intends to reach net-zero emissions across eight sectors of the economy.

ETS: Emission Trading Systems Outside the EU

Emissions trading schemes (ETS) incentivize polluters to reduce CO2 emissions through carbon pricing. ETS in China, South- Korea, Switzerland, the UK and California tend to target energy-intensive industries and can cover up to 80% of all greenhouse gas emissions. Most ETS, excluding South Korea, make polluters pay for the majority of their emissions by obliging them to buy a permit (rights) to emit more CO2 than the baseline, thereby encouraging green investment.

The Hydrogen Rainbow

The colour code tells you which energy type was used to produce the hydrogen in gas form. Currently 95% of hydrogen is based on fossil fuels (grey hydrogen) still leading to high CO2 emissions. To make hydrogen a sustainable source of energy it must be produced by renewable energy (green hydrogen). However, huge investment in green hydrogen production is necessary to scale-up green hydrogen in the amount needed for the Green Transition.