Highlights
48%
Reduction in EU coal mine methane emissions with the new rules, below the 58% necessary. The shortfall is due to the current lack of regulation on coking coal mines.
15
EU Member States will be required to implement mitigation measures. Only Poland and Romania will implement mitigation on active mines.
0
Out of the biggest 10 coal suppliers to the EU currently meet the methane measurements now required by the regulation.
About
This report outlines the implications on coal mining countries of the first-ever EU Methane Regulation, approved on May 27, 2024. It provides an analysis of the potential emissions reductions and covers case studies within, and outside of EU borders. Finally, the report highlights key gaps that must be addressed for the regulation to achieve meaningful emissions reductions.
First of its kind
EU first-ever Methane Regulation for coal mines
Methane is the second most important greenhouse gas contributor to climate change, contributing to about 30% of the rise in global temperatures since the Industrial Revolution.
In December 2021, the EU proposed the EU Methane Regulation as part of its efforts to implement the European Green Deal. The proposal followed the EU Methane Strategy adopted in 2020, in which the EU committed to rapid action on tackling methane emissions.
Approved on May 27, 2024, the regulation is the first of its kind globally for coal mines, requiring stringent monitoring, reporting and verification (MRV) of methane emissions. Coal mine operators are also compelled to mitigate emissions at both active and closed underground mines, which continue to release methane.
As a leader of the Global Methane Pledge, the EU additionally aims to strengthen international collaboration for methane reductions. In 2022, the EU committed to reducing greenhouse gas emissions from fossil fuels through a Joint Declaration from Energy Importers and Exporters on Reducing Greenhouse Gas Emissions from Fossil Fuels. This commitment is also reflected in the EU Methane Regulation, which addresses methane emissions both within and outside of EU borders.
CMM Programme Director, Ember
This regulation is a big step in the right direction for countries to act on methane from coal mining, which is still overlooked globally. However, it is what happens next that will make the difference. The standards for monitoring, reporting and verification of methane need to shift the dial on what is accepted as 'best practice'. And we cannot afford to ignore emissions from coking coal used in steel making. There are big opportunities for reducing coal mine methane both within the EU and through imports to the EU and this regulation must deliver on those.
The Methane Regulation
Regulations could have been stronger
Ember projections indicate that the regulation will achieve a 48% reduction in EU CMM emissions by 2031, driven by EU thermal coal phase-out coupled with mitigation at closed mines. The emissions reductions fall short of EU Green Deal climate targets due to delayed regulation on coking coal mines.
Rather than thermal coal which is used in electricity production, coking coal is used in steel production. Poland’s coking coal mines contributed to 32% of the EU’s total CMM emissions and are one of the largest unaddressed methane emission sources in the Methane Regulation.
The gassiest underground mines in Poland currently mine coking coal (mines producing > 50% coking coal) and are operated by PGG, JSW, and PKW.
The EU has delayed determining a methane emission threshold, or timeline for these mines, until 2027.
An ambitious emission threshold will aid the EU in achieving the remaining emissions cuts necessary to achieve the EU Green Deal. Applying the same threshold to coking coal as has been applied to thermal coal would achieve the required reduction from the coal industry.
Implications
What it means for Member States
The Regulation will require 16 Member States to measure and report CMM emissions. Meanwhile, 15 will be compelled to implement methane mitigation measures, most of which are on closed or abandoned mines.
In this chapter:
Australia is the second largest exporter of coal to the EU and represents approximately 50% of the EU’s coking coal imports.
Using data from the IEA, Ember estimates that the average methane intensity of Australian coal is 3.6 tonnes of methane per kilotonne of coal. Nonetheless, as with all other coal exporters, Australia’s methane measurements also fall below what is now required by the EU.
In Australia, underground mines must measure their ventilation air and drainage methane emissions. Mines can choose whether to undertake continuous or periodic monitoring of methane emissions, which can be as infrequent as once a month. Most mines apply the periodic monitoring option which is not sufficient with the new EU rules.
Surface mines can choose whether to use a state-wide, or mine specific emission factor. This can include multiple factors per mine. Once this factor is established, it should be updated if the owner plans to mine for coal in new areas or deeper seams, however, there are no practical requirements for it to be updated periodically. Unless the surface mines update their emission factors on a quarterly basis, current methods are not sufficient to achieve EU MRV equivalence.
Recommendations
Missing Pieces
The impact of the regulation in reducing methane emissions from coal mines depends on several key factors which are still to be defined. Establishing robust MRV standards, penalties and determining an ambitious methane threshold for coking coal are crucial steps which will ultimately dictate its success in achieving emissions reductions.
The current EU Methane Regulation is a first step in the right direction, however, to achieve meaningful emissions reductions within, and outside of EU borders, policymakers must ensure that the remaining gaps in the regulation do not go overlooked.
To achieve the required emission targets, Ember recommends the EU take three key actions:
- Significantly improve on the globally accepted “best practices” for MRV from coal
- Set guidelines and a standard for infringement penalties
- Set an ambitious methane emission threshold for coking coal mines
The global steelmaking industry will continue to use coal until 2050 even under the most optimistic decarbonisation scenarios, making emissions from this type of coal all the more important to address.
Underground coal mines can mitigate almost all of their methane emissions however most companies take minimal efforts to prevent or minimise methane emissions as they have no economic interest or incentives.
An ambitious methane emission threshold for coking coal combined with penalties would be the strong financial driver to change this attitude globally and incentivise coal mining companies around the world to start prioritising investing in mitigation technologies.
Aside from capturing and utilising drained gas, Regenerative Thermal Oxidizer (RTO) technology can be used by underground coal mines to destroy the majority of their methane emissions.
The cost of such technology over 10 years of operation is approximately 250 euros per tonne of methane. This is significantly below the social cost of methane established in the US and Australia which is $1500-$1940/tonne of methane, and costs on average less than 1% of the price of steel.
The Steel Methane Programme, currently in the final draft stages, is an example of an initiative in which companies commit to mitigate methane emissions in the steel supply chain. The programme, established by the United Nations Environment Programme, outlines a performance and reporting framework for the metallurgical coal industry, including commitments on methane emissions reductions.
