MEP Jutta Paulus: EU methane regulation has a significant global impact

Aeromon CEO, Maria Kuosa, interviews Jutta Paulus, a Member of the European Parliament for Greens/EFA. Paulus is a German politician for Bündnis 90/Die Grünen and a natural scientist, as well as the former managing director at the LAUS GmbH laboratory in Kirrweiler/Pfalz. Politico Europe magazine ranks Paulus among the most important politicians and policymakers in the European Union regarding the implementation of the European Green Deal.

In the European Parliament, Paulus is actively involved in the Committee on Industry, Research and Energy. As a rapporteur, she has focused on the proposal for reducing methane emissions in the energy sector.

Maria Kuosa:

Could you explain some of the complexities involved in aligning the European Union's climate objectives with the practicality and enforceability of these regulations?

Jutta Paulus:

I think the most challenging issue that we have to note was that the European Union is importing about 90% of its oil and gas, and also coal. Therefore, because this regulation is limited to the energy sector, it would have covered only a minor part of the methane emissions involved with the exploration, production, transport and processing of oil and gas which are used in the European Union. So, the most challenging aspect was making sure that we capture as many of those emissions in the regulation as possible, which of course means that we have to extend the regulation to the pre-chain, meaning our imports. There are many questions on enforceability and how it is possible to monitor those emissions. How can we make sure that there is a blockchain-like way to determine which oil and gas we are purchasing? How can we enforce this regulation when there is a company producing these goods in the US, Saudi Arabia and Azerbaijan? So, there were several questions concerning these issues. There were also questions regarding competitiveness. Would it be OK if we impose this on our European companies and the importers, while we cannot, let's say, impose penalties on foreign companies, how is this handled? How can we make sure that the regulation is compliant with the WTO standards? There are a lot of legal questions, but also technical questions, which involve the detection limits and the technologies that are appropriate to measure those emissions. How can we ensure that the values provided by the individual companies are comparable? How can we reward front runners? There are many questions like that.

Maria Kuosa:

How do you perceive the influence of the European regulatory framework within a global context, especially regarding methane emissions reduction?

Jutta Paulus:

I think it cannot be underestimated. We had a lot of contact with scientists, with companies that do measurements, as well as with NGOs that are globally active in this field. I also asked some of these stakeholders if they can estimate how much methane emissions can be mitigated through this regulation. If we manage to extend it to the imports, which assets do we manage at the end of the day? Of course, it's kicking in quite late, but that's another issue, but they estimate that it can help avoid approximately 400 megatons of CO2 equivalent per year, which is approximately two-thirds of Germany’s emissions - which is a lot. Overall, we are talking about roughly 1% of the global greenhouse gas emissions, which has a significant global impact.

Maria Kuosa:

What guidance would you extend to the energy companies now preparing to comply with this forthcoming regulation?

Jutta Paulus:

Well, of course, the first thing we need is robust data. A large part of the regulation entails the monitoring, reporting and verification of emissions. So, my guidance to the companies would be to look at the regulation, look at the intervals within which you have to do a measurement and see if you can do it on your own or if it might be more useful to find a service provider who has more experience in the field, for whom it is easier to determine the factors that must be addressed. Look for a verifier for your values and also start reaching out to your partners, the entities you buy your oil and gas from. Start a discussion with them about the achievable goals and pathway forward, and we will be very interested in having partners that actually take up the responsibility to mitigate emissions and how it will provide a competitive advantage over time.

Maria Kuosa:

Thank you for your valuable contribution and your answers. Furthermore, I would like to extend our best wishes for your continued success in these critical negotiations and passing the regulatory framework.