The EU gas sector is responsible for 20% of the bloc's greenhouse gas emissions, with methane emissions from gas and oil supply chains serving the EU far exceeding those within EU territory, according to a monitoring report published by the European Union Agency for the Cooperation of Energy Regulators (ACER) on 23 June 2026. The report, titled 'Decarbonisation of the EU’s natural gas market - 2026 Monitoring Report', also notes that 85% of the EU's attributable methane emissions from gas and oil supply chains originate outside the EU.
EU gas consumption currently stands at 340 billion cubic metres (bcm) per year, equivalent to approximately 3,645 TWh. The report highlights that methane, a potent greenhouse gas, contributes significantly to global warming. On a positive note, EU biomethane production reached 4.3 bcm in 2024, with more than 1,500 biomethane production plants across member states, representing an annual growth rate of 5%. However, the report also documents a 12% reduction in EU industrial final energy consumption between 2021 and 2023, half of which corresponds to natural gas.
The report further finds that average electricity day-ahead prices in low-carbon power systems are 40% lower than in carbon-intensive ones. Eight member states exhibit a low carbon intensity factor in their electricity mixes. The findings underscore the significant environmental impact of the EU's gas sector and the potential for further decarbonisation through increased biomethane production and a shift to low-carbon electricity.
EU gas producers face pressure to reduce methane leakage and invest in biomethane, while EU consumers may benefit from lower electricity prices in low-carbon systems. EU regulatory bodies gain evidence to support stricter methane emission rules, and non-EU gas suppliers could face increased scrutiny over their methane emissions. The report does not propose new measures but provides data to inform future policy decisions.