Biomethane for EU ETS: Reduce Emissions, Stay Compliant
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Biomethane, as a low-carbon alternative to conventional natural gas, is helping businesses meet EU Emissions Trading System (EU ETS) compliance requirements. Its ability to significantly reduce greenhouse gas (GHG) emissions makes it an essential tool in achieving decarbonization targets and supporting a shift away from fossil fuels.
Across the EMEA region, the push for renewable energy adoption is accelerating, with biomethane at the forefront. The EU has set an ambitious target of producing 35 billion cubic meters annually by 2030, underscoring its commitment to scaling up sustainable energy solutions. At the same time, rising carbon allowance costs and increasing regulatory demands have driven the need for biomethane certificates, ensuring transparency and verifiability in renewable energy procurement.
Read on to learn more about the growing role of biomethane in the energy landscape and why it’s a critical component for meeting EU ETS obligations.
Understanding biomethane
Biomethane is generated through the anaerobic digestion of organic waste, capturing methane that would otherwise be released into the atmosphere and refining it into a high-quality energy source. This process not only cuts greenhouse gas (GHG) emissions but also facilitates waste recycling, producing digestates that can serve as alternatives to chemical fertilizers, further lowering agricultural emissions.
By substituting fossil fuels, biomethane can be injected directly into the existing natural gas grid. It reduces the reliance on imported fossil fuels while ensuring supply stability and enabling industries to decrease Scope 1 emissions, making it vital to decarbonization. Integrating biomethane into energy systems helps businesses align with sustainability objectives and meet the requirements of regulatory frameworks like the EU ETS.
Furthermore, biomethane contributes to the circular economy by converting agricultural residues and organic waste into energy, enhancing resource efficiency, and mitigating environmental impacts.
Biomethane within the EU ETS framework
The EU ETS is one of the world’s largest carbon markets, designed to drive emissions reductions across major industries. Introduced in 2005, it sets a gradually decreasing cap on emissions and requires businesses to surrender allowances based on their carbon output.
Biomethane can support your EU ETS compliance with:
Its zero-emission factor
Biomethane can be assigned a zero-emission factor if it meets sustainability and GHG savings criteria, helping companies lower their carbon liabilities.
Lower compliance costs
By replacing fossil fuels with biomethane, businesses reduce reliance on costly EU allowances, making compliance more affordable.
Decarbonization alignment
Businesses integrating biomethane can meet EU climate targets, easing the financial impact of rising carbon prices while strengthening their sustainability strategies.
Biomethane certificates
Provide verifiable proof of renewable energy use, enhancing transparency and simplifying reporting under EU ETS guidelines.
As demand for renewable gas grows, biomethane offers a practical, cost-efficient pathway for companies looking to align with the EU’s long-term climate goals while optimizing their energy strategies.
Meet EU ETS requirements with biomethane
As carbon prices rise and EU ETS requirements increase, businesses that integrate biomethane can lower compliance costs and reduce their carbon liabilities. With its zero-emission factor and sustainability credentials, biomethane offers a reliable way to meet EU ETS requirements while strengthening long-term decarbonization strategies.
Get a tailored biomethane procurement strategy with ACT today.