OIES Podcast – A blueprint for compliance solutions under the EU’s methane emissions regulation

A new paper titled "A Framework on Implementing a Compliance Solution" under the EU Methane Emissions Regulation has been published by the Oxford Institute for Energy Studies. The paper, authored by Fiji George and a team from Chenier and other organizations, aims to provide a practical framework for designing and evaluating compliance solutions specifically for liquefied natural gas (LNG) under the EU's methane regulations. The authors emphasize the need for input from industry practitioners to ensure that the framework is implementable across the diverse regulatory landscapes of the 27 EU member states.

The paper outlines two compliance solution models: certification and trace and claim. Certification allows importers to decouple verified methane emissions attributes from the physical commodity, while trace and claim keeps these attributes bundled with the commodity throughout the supply chain. The authors highlight the importance of establishing a clear governance structure for compliance solution providers, who must operate independently from market participants to avoid conflicts of interest. The paper also discusses the role of competent authorities in approving these solutions, which is crucial for ensuring harmonized implementation across member states.

As the EU considers a potential delay in the regulation's implementation, the authors stress the importance of developing a robust compliance framework that meets minimum standards. They argue that while the timing of implementation is uncertain, the need for a clear and predictable compliance solution is critical for industry stakeholders. The paper serves as a roadmap for stakeholders to navigate the complexities of the new regulations and emphasizes the importance of good governance in the certification process.

In this latest OIES podcast James Henderson talks to Fiji George and Jonathan Stern about a recently published paper called “A Framework on Implementing a Compliance Solution under the EU Methane Emissions Regulation.” The European Commission (‘EC’) has introduced the concept of Compliance Solutions as a mechanism for complying with the Monitoring, Reporting and Verification […]

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