A coalition of 32 leading global industrial and energy companies, including Tata Steel, Volvo Trucks, and Pernod Ricard, has called on the authors of the Greenhouse Gas Protocol (GHG Protocol) to revise the rules for recognizing certificates of origin for renewable gas (biomethane). The current framework does not allow companies to officially report emissions reductions achieved through the use of biomethane, even though they are investing heavily in it. Unclear rules for counting market certificates of origin are thus hindering the development of green gases and the transition to a low-carbon economy.
The GHG Protocol is the most widely used methodology for reporting greenhouse gas emissions in the world and is followed by more than 97% of the largest global companies listed on the S&P 500 stock index. However, its current settings disadvantage companies that are actively switching to biomethane and other renewable sources, thus slowing down the achievement of the Net Zero goal – a state where the amount of greenhouse gases emitted into the atmosphere is balanced by the amount of gases removed from the atmosphere. While the UN COP30 conference discussed accelerating climate action, there is a lack of clear rules to ensure transparency in the market for biomethane certificates and guarantees of origin.
Biomethane is a genuine low-emission alternative to natural gas. When produced from biodegradable waste or agricultural residues, it is a stable and environmentally friendly energy source that can immediately replace part of fossil fuel consumption. For sectors such as heavy industry, steel production, and transportation, which cannot switch to electrification overnight, biomethane is a key and immediately available solution.
According to the World Biogas Association, only around five percent of the global potential of biogas, from which biomethane is produced, is currently being utilized. Unclear rules are hampering investment and jeopardizing commitments to the development of renewable gases, which have been set, for example, by Brazil as the host country of COP30. Industry leaders are therefore calling for the immediate issuance of an interim position statement confirming the validity of market instruments and for the acceleration of the revision of standards, which should take place by 2028.
This global challenge may also have an impact on domestic energy transformation, where biomethane also has an important role to play. The Czech biomethane producer Energy financial group (EFG), which has long advocated for clear and fair rules supporting the transition to energy self-sufficiency through renewable gases, faces the same obstacles as global industry leaders.
“Transparency and harmonization of international rules on sustainability certificates and guarantees of origin are important for both biomethane producers and consumers, as they create a stable environment that fosters investment. We see this call from large industrial companies as a positive signal in the sense that biomethane is attracting growing interest not only on the supply side, but especially on the demand side,” says Petr Voltr, Director of the EFG Commodities Division.
