Europe’s First Bid to Track Methane Emissions Is Falling Short

image is BloomburgMedia_T5O0C1KJH6V400_14-11-2025_09-27-37_638986752000000000.jpg

A flare stack at an oil refinery. Photographer: Luke Sharrett/Bloomberg

The European Union’s first inventory of methane emissions — one of the most potent drivers of global warming — is off to a rocky start, with some German firms not submitting their data.

According to a recent summary, only about two-thirds of Germany’s gas distributors had filed reports with the German Environment Agency by late last month. The country’s gas network, the largest source of such emissions, spans hundreds of thousands of kilometers and accounts for nearly half of national output.

Methane, though less discussed than carbon dioxide, is responsible for about a third of global warming since preindustrial times. Cutting it is one of the quickest ways to slow climate change — and the European Commission’s new monitoring effort aims to create the bloc’s first comprehensive picture of methane leaks across the oil, gas and coal sectors.

The data will underpin future climate policy, shape stricter emission limits and guide enforcement under the EU’s Green Deal. Germany’s incomplete reporting would leave a major gap in that effort, since it is one of Europe’s largest gas markets and infrastructure hubs.

Germany has voluntarily committed to cutting methane emissions by 65% by 2030, under the Global Methane Pledge. To support that goal, the European Commission’s new Methane Regulation requires fossil fuel operators to measure and report emissions. Fines of as much as 20% of annual revenue could follow once member states enforce the law.

However, Germany’s national rules are still being drafted, the environment ministry told Bloomberg News. A spokesperson said in the first full year of reporting, “the response rate is typically not yet perfect,” and that the European Commission’s methane database won’t be ready until next year.

Germany’s reported distribution grid emissions of 7,700 tons may be roughly 30% too low. In oil and gas exploration, official figures also fall short of industry estimates. The country’s environment agency said this discrepancy prevents it from submitting full data to the United Nations.

The methane regulation remains “very vague and unclear,” said Silke Goldberg, Global Head of Sustainability at law firm HSF Kramer. “There are still no guidelines for methane intensity or thresholds, no verification framework, and no technical implementation rules,” she added, making compliance difficult.

The German Association of Natural Gas, Petroleum and Geoenergy — which represents extracting industries — said it had not been contacted about the data gap but maintained that “to our knowledge, all companies have complied with their reporting obligations,” according to a spokesperson.

Meanwhile, the Association of Local Public Utilities — representing most of Germany’s distribution grids — said the European Commission should simplify the rules to ease the burden on operators.

“The methane reporting requirements create a significant burden for our companies, with little benefit to show,” a spokesperson said.

©2025 Bloomberg L.P.

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