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About Commodity Insights
11 Apr 2024 | 12:49 UTC
Highlights
Adopts plans to facilitate uptake of renewable gases
Gives member states power to restrict Russian gas, LNG
To become law once formally adopted by EU Council
The European Parliament on April 11 voted through a new gas package designed to facilitate the uptake of renewable and low-carbon gases and to give member states the power to restrict Russian gas and LNG imports at the national level.
The package -- made up of one directive and one regulation -- aims to decarbonize the EU's energy sector, enhancing the production and integration of renewable gases and hydrogen, and to ensure energy security.
The regulation, adopted with 447 votes in favor, 90 against and 54 abstentions, will beef up mechanisms for fair pricing and stable energy supply, the Parliament said.
The directive -- which establishes common rules for internal markets in hydrogen and renewable gases -- was adopted with 425 votes in favor, 64 against and 100 abstentions.
The package gives member states the right to limit gas and LNG imports from Russia and Belarus.
The legislation will also introduce a joint gas purchasing system to avoid competition among member states and a pilot project to bolster the EU's hydrogen market for five years, the Parliament said.
Lead MEP on the regulation, Jerzy Buzek, said the regulation would transform the energy market into one based primarily on two sources -- green electricity and green gases.
"This is a huge step towards meeting the EU's ambitious climate goals and making the EU more competitive on global markets," Buzek said.
A clause on Russian gas was also made part of the package.
"We have introduced a legal option for EU countries to stop importing gas from Russia if there is a security threat, which gives them a tool to phase out our dependence on a dangerous monopolist," Buzek said.
Both texts will now have to be formally adopted by the EU Council before publication in the Official Journal.
On April 10, the Parliament also signed off on a new law to reduce methane emissions from the energy sector with 530 votes in favor, 63 against and 28 abstentions.
The new regulation is the first piece of EU legislation aimed at cutting methane emissions and covers direct methane emissions from the oil, fossil gas and coal sectors, and from biomethane once it is injected into the gas network.
"Finally, the EU is tackling the second most important greenhouse gas," co-rapporteur Jutta Paulus said.
"Reducing methane emissions is not only climate action but also improving air quality and increasing energy sovereignty in the EU," Paulus said.
The law now also has to be adopted by the EU Council before being published in the EU Official Journal and entering into force 20 days later.