How the "methane" reform could help Ukraine move closer to EU and generate revenue

Methane policy is no longer just a narrow climate issue. For Europe, it is increasingly becoming part of a broader strategy to strengthen energy security, reliability and transparency in energy supplies.

Recently, the International Energy Agency (IEA) published its new report, Global Methane Tracker 2026.

The report shows that reducing gas leaks and ending routine flaring could make up to 200 billion cubic meters of gas available to consumers every year.

Read more about why methane policy should become one of the key reforms of Ukraine’s energy sector and what exactly should be done in the article by Oleh Savytskyi of Razom We Stand: Five steps and more than €1 billion annually: why Ukraine should adopt the EU methane regulation.

Ukraine, as an EU candidate country, possesses extensive gas infrastructure, including underground gas storage facilities, gas production sites, coal mines, outdated gas networks and significant energy losses.

In 2023, methane accounted for around 27% of Ukraine’s total greenhouse gas emissions.

At the same time, 71% of the country’s methane emissions originated from the energy sector.

Without full implementation of the EU Methane Regulation, Ukraine could face a new reality on the European gas market as early as 2028. Starting in 2030, imports will have to comply with methane intensity limits set by the European Commission.

However, commercial pressure on importers will begin even earlier.

European buyers, traders, banks and insurance companies will demand proof that oil and gas supplies have a transparent, measured and verified methane footprint – from extraction all the way to entry into the EU market.

Although the challenge appears complex, the incentives for reducing methane emissions are substantial.

According to estimates by the Green Deal Ukraine project, Ukraine could potentially recover around 3 billion cubic meters of methane annually as additional fuel through sector-specific measures.

This includes reducing emissions and leaks in the oil and gas sector, capturing methane at solid waste landfills and wastewater treatment plants and degassing coal mines located in government-controlled territories.

Fully utilising this potential could cover up to 10-15% of Ukraine’s natural gas demand while reducing greenhouse gas emissions by 60-85 million tons of CO₂ equivalent annually.

It could also generate considerable economic benefits up to €11 billion over the next decade.

This represents a double benefit: money not spent on gas imports could instead be invested into Ukraine’s domestic economy.

The EU Methane Regulation has become one of the benchmarks within Ukraine’s National Programme for Adapting Legislation to the EU acquis.

The government programme explicitly envisages incorporating the key provisions of Regulation 2024/1787 into Ukrainian legislation by the end of 2027. This includes defining competent authorities, introducing systems for monitoring, reporting and verification, and inventorying inactive wells and abandoned coal mines.

In practical terms, Ukraine needs to take five sequential steps.

First, adopt a framework law implementing EU Regulation 2024/1787.

Second, define the competent authorities and their responsibilities.

Third, establish a methane monitoring, reporting and verification system based on measurement data.

Fourth, introduce LDAR (Leak Detection and Repair) programmes, as well as rules governing venting and gas flaring.

Fifth, ensure sufficient financing and staffing for implementation.