As part of the European Green New Deal, the EU enacted its first regulation to curb energy methane emissions in 2024. The regulation targets reductions from both EU operators and imported fossil fuels, focusing on 1) transparency of methane emissions data for imports, 2) supply chain emissions reporting, and 3) setting methane intensity limits for new fossil fuel contracts. The rules will be phased in, with initial requirements for imports to meet the same MRV standards as EU-produced fuels. Obligations on methane intensity reporting and compliance with intensity limits will follow later in the decade. This means future gas contracts with the EU must comply with strict methane reporting and mitigation standards.

South Korea joined the Global Methane Pledge in 2021. The country plays a significant role in global energy markets as one of the world's top four or five largest importers of coal, oil, and gas. As a signatory to the Global Methane Pledge, South Korea committed to join methane reduction efforts alongside other signatories, including major importing and exporting countries. The more major markets impose regulations on imports, the more effectively methane emissions from global oil and gas production can be reduced. Given its significant import volumes, South Korea holds sway over methane emissions in fossil fuel producing countries.

Methane emissions from the production sites of fossil fuels imported to South Korea amount to approximately 50 million tons CO2e using GWP100, twice the country’s total domestic methane emissions. This substantial volume is slightly less than Portugal's total green house gas emissions for 2022 (approx. 51.37 million tons CO2e).

In the short term, reducing methane emissions from fossil fuel imports could serve as a viable option for South Korea to contribute to addressing the global climate crisis in the current energy supply and demand structure. The Korean government should consider reviewing a methane import standard that fosters cooperation between fossil fuel producers and importers, akin to the approach piloted by the European Union.

* The report builds on CATF's Roadmap for the Development of an EU Methane Import Standard, Impact of EU Methane Import Performance Standard, among others.