Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Eurogas appears to be highly engaged with EU climate policies, with predominantly negative positions. The association's top-line climate communications and position on carbon pricing measures appears to be positive, however its position on other forms of climate regulation are mostly negative while it advocates for a continued role for fossil gas in a future energy-mix.
Top-line Messaging on Climate Policy: Eurogas appears to clearly recognize the need for action in the face of climate change in its climate communications. Eurogas president, Didier Holleaux, stated support for the EU's 2050 net zero emissions target in a January 2024 statement. In a February 2023 joint statement, the association stated support for the EU Green Deal, while in its March 2021 climate ambition statement, the association stated that it holds an established commitment to the Paris Agreement. The association also supported policy and regulatory action, including carbon pricing policies, to tackle climate change in a February 2021 consultation response.
Engagement with Climate-Related Regulations: Eurogas’s engagement with climate-related regulations appears to be predominantly negative. In a September 2023 letter to EU policymakers, Eurogas advocated to weaken significant elements of the EU Methane Regulation for the energy sector, and also advocated against the inclusion of imported fossil fuels. In a May 2023 joint paper, the association advocated for the use of fossil gas and biofuels to decarbonize heavy-duty vehicles (HDV) over electrification, and appeared to advocate for the recognition of natural gas under the EU HDV CO2 standards. In addition, in a July 2024 consultation response, accessed via freedom of information request, Eurogas advocated to weaken the EU CO2 standards for light-duty vehicles through the inclusion of CO2 neutral fuels after 2035.
Furthermore, in an April 2022 newsletter Eurogas President Didier Holleaux advocated to weaken the EU's Energy Efficiency Directive revision, by calling for energy savings from coal to gas transitions to be included in the energy savings obligation. Eurogas also advocated to weaken the EU’s Renewable Energy Directive (RED) revision in a November 2021 consultation response, by advocating for the inclusion of non-renewable low-carbon fuels, including low-carbon hydrogen in RED targets.
In a February 2021 consultation response, Eurogas stated support for a Carbon Border Adjustment Mechanism (CBAM) but with exceptions, suggesting it should only cover manufactured products and complement the current EU ETS free allowances. In the February 2021 consultation, Eurogas appeared to support the strengthening of the EU ETS to match the increased climate ambition of the EU. This was reaffirmed in Eurogas’s March 2021 climate ambition statement, where the association repeated its support for strengthening the EU ETS.
Positioning on Energy Transition: Eurogas is campaigning for the role of gas in Europe’s future energy mix, seemingly looking to defend the role of fossil gas while simultaneously promoting increased contributions from renewable and low-carbon gases. In a January 2022 joint letter, Eurogas called for a weakening of the EU Commission's proposal for the sustainable finance taxonomy by advocating for the inclusion of fossil gas. Additionally, in a May 2023 Montel article, Eurogas Secretary-General, James Watson, did not appear to support the EU’s 2030 Gas Demand Reduction Target. Eurogas also signed an April 2023 industry association joint letter to EU and US policymakers, directly advocating for new LNG infrastructure investments. In a July 2024 consultation response, accessed via freedom of information request, Eurogas advocated for biomethane, LNG and CNG to be used in the decarbonization of corporate fleets.
Outside of Europe, Eurogas has promoted fossil gas infrastructure investments and opposed measures to restrict new liquefied natural gas (LNG) infrastructure. For example, Eurogas Secretary-General, James Watson testified to a February 2024 US Senate Hearing against the Biden administration to reconsider its decision to pause liquified natural gas (LNG) export permits. In a March 2023 industry association joint letter to Prime Minister of Japan, Fumio Kishida, the association advocated for new fossil gas and LNG infrastructure investments ahead of a May 2023 G7 meeting.