Proposed import standard could set a precedent for Asia’s energy importers to curb methane emissions across supply chains through procurement-based measures
June 30, 2025 (SEOUL) — South Korea sourced 98% of its oil and gas from abroad in 2023, making it one of the world’s top five fossil fuel importers. According to a new report by Solutions for Our Climate (SFOC) and Carbon Limits, methane emissions tied to South Korea’s oil and gas imports were 17 times higher than domestic emissions, urging the country to adopt cross-border methane standard modeled after the European Union’s recently enacted regulation.
The report, Assessment of Opportunities for Implementing a Methane Import Standard in South Korea, estimates that upstream methane emissions from imported oil and gas reached 30.081 million tonnes of CO₂ equivalent (CO₂e) last year, dwarfing the 1.708 million tonnes emitted within South Korea’s borders. The report argues that these findings demand a value-chain approach to climate accountability—one that regulates not only how fossil fuels are used, but how they are produced.
Figure 1: Estimated methane emissions from oil and gas within South Korea and from imported products (Source: SFOC and Carbon Limits)
The EU has already begun to lead on this front. The EU Methane Import Standard targets both domestic operators and imported fossil fuels, introducing requirements for transparency in methane emissions data, full supply chain reporting, and limits on methane intensity for new fossil fuel contracts. The report calls on South Korea to follow suit by implementing import-based regulations that could drive down global methane emissions and position the country as a leader among Asia’s energy importers.
Methane intensity far exceeds international benchmarks
Methane emissions in the oil supply chain mostly occur during upstream production, while emissions from liquefied natural gas (LNG) span upstream, liquefaction, and transport stages. In 2023, oil imported to South Korea from its top nine suppliers had a weighted average methane intensity of 27.6 kg CO₂e per barrel of oil equivalent (BOE)—roughly five times higher than the U.S. benchmark of 5.9 kg CO₂e/BOE, based on the Waste Emissions Charge’s threshold and the Oil and Gas Climate Initiative’s (OGCI) 0.2% target.
LNG imports fared no better. The average methane intensity from South Korea’s top seven gas suppliers reached 22.3 kg CO₂e/BOE—3.8 times higher than the U.S. threshold.
Four policy levers to tackle imported methane
The International Energy Agency (IEA) classifies methane policies into four categories—information-based, prescriptive, performance-based, and market-based—which can be applied individually or in combination to design import standards. While initially used for domestic policies, these approaches are now being extended to cross-border regulations, as seen in the EU Methane Regulation.
Information-based approach focuses on improving monitoring, reporting, and verification (MRV). Under such a model, importers would require exporters to submit methane data using approved methods, including direct measurements or standardized emission factors. The credibility of this approach depends on rigorous data quality, regular reporting, facility-level granularity, and independent third-party audits.
A prescriptive approach mandates specific technologies or practices across the value chain. This could include leak detection and repair (LDAR) protocols, banning routine flaring and venting, and the use of best available technologies (BATs) such as vapor recovery units or low-bleed pneumatic controllers. If South Korea were to adopt EU-style prescriptive standards, the report estimates methane intensity from imported oil could drop by 63%, and by 32% for gas.
A performance-based approach sets a maximum allowable methane intensity for imports but allows exporters to choose how to comply. This model requires clear methodologies for calculating intensity and strong MRV systems, while encouraging innovation and cost-efficient solutions. This approach could reduce the average methane intensity of imported oil to 6.4 kg CO₂e/BOE (a 77% cut) and LNG to 10.8 kg CO₂e/BOE.
Meanwhile, the market-based approach applies fee or tax on imports based on reported or default methane intensities, or emissions above a set benchmark. This incentivizes emissions reductions by making high-intensity fossil fuels less economically attractive and can be integrated into existing emissions trading systems (ETS) or carbon pricing schemes.
“While South Korea may choose an approach that reflects its national priorities, finding common ground with regulations like those in the EU could enhance the impact on global methane reductions,” said Irina Semykina, the author of the report and Senior Consultant at Carbon Limits.
Time for Korea to take the lead
Having signed the Global Methane Pledge in 2021, South Korea committed to slashing its methane emissions by 30% by 2030, with 2020 as the baseline. The government’s announcement of a national methane reduction roadmap in November 2023 was a welcome step, signaling alignment with global methane mitigation efforts.
"Like the EU and Japan, South Korea is one of the world’s largest importers of fossil fuels. By requiring methane emissions data from exporting countries, Korea can not only improve transparency around greenhouse gas emissions but also lay the groundwork for meaningful action to limit global temperature rise," said Jinsun Roh, Head of Methane and HFC team at SFOC.
ENDS.
Solutions for Our Climate (SFOC) is an independent nonprofit organization that works to accelerate global greenhouse gas emissions reduction and energy transition. SFOC leverages research, litigation, community organizing, and strategic communications to deliver practical climate solutions and build movements for change.
For media inquiries, please reach out to Antonette Tagnipez, Communications Officer, antonette.tagnipez@forourclimate.org.
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