Biomethane is currently largely produced and consumed in the same country, only a small quantity is traded across borders. The main reason for this is that currently almost all biomethane is subsidised and governments don't allow the export of subsidised biomethane. One other reason for limited international trade could be the notion that importing countries cannot count the greenhouse gas savings of biomethane towards their international climate obligations. The Biomethane Industrial Partnership tasked Common Futures to analyse this last point.
Our study analysed how unclear guidelines for reporting emission inventories for the UNFCCC can create a barrier for cross border trade of biomethane between EU Member States. Experts from 17 Member States, IPCC, Eurostat, and the European Environment Agency were consulted. The analysis resulted in two main findings which are a barrier to cross border trade in the EU. Firstly, for reporting GHG inventories, EU regulations prohibit the use of administrative methods like certificates, which can create a gap between physical and administrative realities of emissions. Secondly, Member States apply inconsistent methods for accounting imports and exports, which can risk double counting. As trade grows, these issues could hinder biomethane trade and EU climate goals.
As a result of this study, discussions are now ongoing among EU Member States and the European Commission on how to improve and harmonise emission accounting for imported and exported biomethane.
