Parliament adopts law tightening methane emission rules in energy sector

Zagreb - The Croatian Parliament on Friday passed a law implementing the EU’s regulation on reducing methane emissions in the energy sector, aligning national legislation with new European rules targeting one of the fastest-growing sources of climate change.

Although EU Regulation 2024/1787 is applied directly across member states, with the new law Croatia clearly defines for the first time the competent authority, monitoring system, and penalties for non-compliance.

Presenting the law, Vedran Špehar, State Secretary at the Ministry of Economy, stressed: “After carbon dioxide, methane is the most important greenhouse gas contributing to climate change, with its heat-trapping potential many times higher.“ Reducing methane is one of the fastest and most effective ways to slow global warming, especially in energy and agriculture, he added.

The law focuses on the energy sector, particularly emissions from oil and gas exploration, transport and storage, and from abandoned wells and mines. Operators must measure and monitor emissions, detect and fix leaks, report regularly, and ensure independent verification of data.

A major change is the clear assignment of responsibilities: the Ministry of Economy is the competent authority for enforcement and data collection, while inspections are carried out by the State Inspectorate and Ministry of the Interior. The law also sets detailed penalties, ranging from €5,000–50,000 for minor breaches to €250,000 for serious violations, plus daily fines until issues are resolved.

Špehar acknowledged that “emissions cannot be completely avoided in all industries”, but stressed reductions are mandatory. He added that the law encourages a transition to cleaner energy, including geothermal sources, stating: “The goal is to establish a system and set limits; penalties are secondary.”

The law is part of the EU’s Green Deal and the ‘Fit for 55%’ package, coinciding with EU discussions on energy security, regulatory simplification, and reducing administrative burdens.

European Parliament rapporteur Pascal Canfin highlighted that there are three key sectors for methane emissions – energy, industry, and agriculture – and that with the regulation, the energy sector is being prioritised.

German MEP Jutta Paulus rejected claims that reducing emissions would necessarily increase costs, noting that just three percent of last year’s fossil fuel company profits would be sufficient to eliminate 80% of emissions, and she emphasised the need for equal rules for all.

Despite uneven global efforts, including the fact that some major emitters have not joined initiatives such as the Global Methane Pledge, the EU continues to develop a framework to cut emissions, strengthen energy security, and improve market transparency.

The Global Methane Pledge, launched in 2021 at the 26th UN Climate Change Conference (COP26), aims to cut global methane emissions by at least 30% by 2030. Both Croatia and the EU are signatories.

Slovak MEP Martin Hojsík observed that at COP26, a promise was made to significantly reduce methane emissions. The ambitious Methane Regulation demonstrates that these promises are being translated into action, he said.

Under European and global commitments, Croatia aims to reduce greenhouse gas emissions by 55% by 2030 compared with 1990 levels. Government sources emphasised that reducing methane emissions is essential for a healthy environment, that the revised National Energy and Climate Plan provides the roadmap, and that the new law is the instrument turning the plan into operational reality with defined deadlines, responsibilities and measurable results.

Author: Hina