Renewable Gas Tracking Systems – Value of Biomethane Certificates

Eurogas, along with the European Biogas Association, the European Renewable Gas Registry, and the Renewable Natural Gas Coalition, have recently commissioned a report from S&P Global Commodity Insights CI Consulting to support efforts to inform the revision of the Greenhouse Gas Protocol.

This report demonstrates that there is a solidly regulated biomethane market in Europe and the US, which provides sustainability, guarantees and transparency, plays an increasingly important role in achieving GHG emissions reductions targets, and supports the economics of new production capacity development.

Key messages of this report include:

1. RNG certification and tracking systems have enabled efficient use of RNG and decarbonisation efforts in compliance markets. Recognition of RNG under the GHG Protocol accounting framework could enable more efficient use of RNG in voluntary markets.
2. The EU legislative framework regulates RNG through Guarantees of Origin and Proof of Sustainability certification, supporting RNG capacity development and incentivising the use of sustainable low carbon feedstock.
3. The US market-based policy mechanisms, i.e., the US, RFS and California LCFS, support GHG emissions reduction in the transport and agriculture sectors and are a key driver of RNG capacity development and cost-competitiveness.
4. RNG production is a key driver of GHG emissions reductions, amounting to ~5 million tons of CO2eq in the US (RNG LCFS credits data) and ~15 million tons of CO2eq in the EU (RNG production data) in 2023.
5. RNG production is set to increase substantially, mainly supported by market-based mechanisms. The EU aims to reach 35 Bcm/a production by 2030, while the US has set non-transport sector targets (states and utilities) of around 6 Bcm/a.

Read the full report below.