The European Sustainability Reporting Standards (ESRS) are designed to support the EU’s transition to a low-carbon economy. Yet, current rules create uncertainty around one key solution: biomethane.
Under ESRS E1-6, companies must disclose their greenhouse gas emissions following the GHG Protocol Corporate Standard. However, the GHG Protocol does not yet provide guidance on how to account for biomethane certificates. As a result, businesses lack clarity on how biomethane can be used to reduce Scope 1 and Scope 3 emissions.
This regulatory gap is delaying investments in new biomethane production. Companies eager to decarbonize are holding back until clearer rules are in place, stalling progress on both climate targets and renewable energy development in Europe.
The ongoing revision of the ESRS presents an opportunity to address this issue. ERGaR recommends a simple yet impactful change: include explicit language in the ESRS that recognises biomethane as a valid means of reducing Scope 1 and 3 emissions.
Such clarity would unlock investment, accelerate renewable gas deployment, and strengthen Europe’s path to a greener future.
Stakeholders can contribute to the public consultation here.