The aim of this short paper is to summarize what EU Emissions Reporting is and how it can be best reported. However, before we begin, please note that this article is based on available data up to 12.3.2025. Therefore, if you are reading this article at a much later time, it may be worth revisiting the regulation updates.
The regulations for Leak Detection and Repair (LDAR) have been in place for a long time and are not a new issue for Gas Companies. In many countries, such as Germany, LDAR programs are regulated, with standards being continuously reviewed and updated by organizations like DVGW, which governs the gas and water markets to enhance and update standards. Traditionally, the main focus of LDAR programs has been to improve the safety and efficiency of operating gas networks. However, the major change this time is Emission Reporting, which has raised many questions at the top management level of Gas Companies. So:
What is emission reporting?
Emissions reporting is the process by which companies or industrial facilities have to inform the competent authorities about the amount of pollutant gas emissions they are releasing into the environment. This procedure is essential to comply with environmental regulations and helps to monitor and manage the impact that industrial activities have on our environment.
With the arrival of the new EU regulation on methane, an obligation to report methane emissions has been established, which is very important considering its strong impact on global warming.
What Is the Root Cause of the EU Emission Reporting?
The EU Emission Reporting mandate is part of the EU Green Deal. The European Green Deal, approved in 2020, is a set of policy initiatives by the European Commission aimed at making the European Union (EU) a climate-neutral union by 2050. This objective is to be achieved through various measures. One of these measures is the binding target for 2030, which aims to reduce net greenhouse gas emissions by 55% compared to 1990 levels by 2030 (European Commission, 2024).
To achieve the goals of the EU Green Deal, numerous regulations have been introduced across various industries. The major regulation impacting the oil and gas industry is: Full name: REGULATION (EU) 2024/1787 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 13 June 2024 on the reduction of methane emissions in the energy sector and amending Regulation (EU) 2024/1787. From now on, it will be referred to as (EU) 2024/1787.
Why is EU Emission Reporting Used?
Through Emission Reporting, as part of the (EU) 2024/1787 regulation, the EU Commission aims to measure the amount of emissions released at the country/state level and compare this with historical data from 1990 to ensure the monitoring of the 55% reduction relative to 1990 levels.
To gather this data, the EU Commission will require Member States to submit their emissions figures. As part of this report, each Member State must also collect and report data on emissions released by Gas Companies and network operators.
How Often Should the Emission Report Be Submitted and To Whom?
The emission report must be submitted annually by 31 May, covering the previous calendar year. It is submitted to the competent authorities of the respective Member State ((EU) 2024/1787, Article 12(3)).
What Needs to Be Reported in Emission Reporting?
The report must include:
- Type and location of emission sources
- Methane emissions in tons (kg * 1000) and/or CO2-equivalent
- Quantification methodologies used
- Total methane emissions for operated assets
- Ownership shares and emissions from non-operated assets ((EU) 2024/1787, Article 12(4)).
To sum up: EU Emission Reporting aims to help achieve the EU Green Deal, striving for climate neutrality by 2050 and a 55% reduction in greenhouse gas emissions by 2030. Regulation (EU) 2024/1787 is the binding law, particularly affecting the oil and gas industry. Member States must annually report emissions in tons per year. This data helps track progress against target goals.
Levels of Emission Reporting Under EU Requirements
As mentioned earlier, the EU Commission will require each Member State to provide their emission reporting in the format of weight/unit of time at the national level. In turn, the EU Member States will ask all stakeholders to submit their emission reports at two different levels:
- Source-Level Emissions: Source level refers to the leak at each specific leak source, such as leaks from pipes, compressors, or wells.
The report should be quantified using direct measurements at the source with measuring devices in the same format of weight/unit of time.
If direct measurements are not possible, specific emission factors derived from direct measurements must be used. If neither of the above is feasible, generic emission factors from databases or simulation models may be used ((EU) 2024/1787, Article 12(2)).
- Site-Level Emissions: Refers to emissions released from all assets under operation in a given period. Emission data can be measured using mobile sensors (vehicles, drones, aircraft, satellites) or fixed sensor networks to capture an overview of all emissions on-site. This data must be compared with aggregated source-level emissions for verification and reconciliation ((EU) 2024/1787, Article 12(6)).
What Are the Approved Methods for Quantification?
As mentioned earlier, emissions need to be calculated in tons/year. Of course, this unit, like any other, can be converted to kg/hour, L/min, or g/hour for the quantification process, but in the final report, this number must be presented in tons/year. The first question to answer is what are the approved methods for quantifying the emission. Quantification can be done using:
- Direct measurements: The preferred method, which involves directly measuring the quantity of methane released into the atmosphere at the source level. The source level refers to the leak source, such as a crack in an operated pipeline.
- Specific emission factor: Also derived from direct measurements ((EU) 2024/1787, Article 12(2), Article 32).
To sum up: an operator must first measure their emission in the format of methane weight/unit of time at the source level using an approved method, preferably direct measurements. Then, with the help of mobile or fixed sensors, they must measure emissions at the site level, which should match the sum of source-level emissions. For shared parts of the network, the operator must multiply emissions from non-operated assets by the share of ownership.
The 5 golden rules for emissions reporting
If you want your company to be well-positioned to comply with the new EU Methane Regulation (EU) 2024/1787 you must follow these five rules:
- Emissions must be reported in tonnes/year.
- Emission reports must include location and type of each emission source.
- Emission reports for gas distribution companies consist of two levels:
- Source level
- Site level
- The EU’s preferred method of data collection for emission reports is direct measurement.
- The sum of all source-level measurements must match the site-level measurement.
Procedure for correct emission reporting
The first step is to identify emission sources from assets that are either fully or jointly owned by your company—such as pipelines, stations, and emissions released during maintenance, commissioning, or decommissioning.
Your reports must include emissions in tonnes/year and specify both the location and type of emission.
The regulation strongly encourages direct measurement, which means quantifying the amount of methane released (in tonnes/year) directly at the source—whether from a leak or from flaring operations.
You’ll need to prepare two types of reports:
- Source-level report: reporting emissions at each specific source such as a leak.
- Site-level report: reporting total emissions from all company-controlled assets.
The site-level report must be supported and validated by the sum of all source-level reports.
Case study for emission reporting
Here’s how it looks in practice:
- Step 1: Detect the leak or flaring source (note: venting is no longer permitted).
- Step 2: Measure the emissions released from the leak or flaring activity in tonnes/year.
- Step 3: Document the findings, including emission amount, type, and location.
- Step 4: Prepare an individual report for each emission source.
→ Result: Your source-level reports are now complete.
For site-level reporting, you should use vehicle-based or aerial observation solutions to monitor your network and collect emissions data. The data collected must be verified and should match the total emissions calculated from your source-level analysis.
- Step 5: The total of your source-level reports should equal the site-level report obtained using vehicle or aerial detection.
Emissions reporting challenges and solutions
Required technology
Finding devices capable of quantifying emissions directly at the source in tonnes/year (for both leaks and flaring).
We address this challenge with four key devices:
OLLI
OLLI is a multi-functional tool: personal protective equipment (PPE), gas measurement device, above-ground leak detector, and emission reporting system. It includes integrated emission quantification technology—allowing your leak detection team to detect leaks and simultaneously complete the required emission reporting for above-ground pipes and flaring/venting activities
Gas flares
Esders Gas Flares respond directly to the EU 2024 regulation, which bans venting and permits flaring only under strict conditions: 99% hydrocarbon destruction efficiency, auto-ignition, and the ability to report flared gas volumes. Esders offers three models—S, M, and L—all meeting these criteria and equipped with an outlet to connect to Olli for emission reporting.
Laser HUNTER
Laser HUNTER is a high-precision, fast-response leak detection and emission monitoring device. It includes integrated emission quantification and should used in combination with Vacumobile for emission monitoring.
Vakumobil
Vakumobil is critical for underground pipe emissions reporting. Leaks underground create gas clouds over time. The mass and volume of this gas cloud will be much higher than the mass and volume of the gas being released from the leak source, which will result in wrong emission values by showing much higher amounts. Vakumobile, with its outlet connection to Laser Hunter, will rectify this error by clearing the gas cloud build-up beneath the surface and adjusting the gas mass for emission monitoring to the correct value.
Documentation
The device must be able to document essential data required by the regulation, such as emission type and location.
Measuring emissions isn’t enough. A device that simply displays the emission level on-screen doesn’t fulfill the regulation. Devices must also record essential data such as date, time, GPS location, and ideally, even include operator name and signature for traceability and regulatory compliance.
We introduce the free Esders Connect Application! Available on both Android and iOS. Think of your Esders device as the hardware and your Esders Connect app as the software. The device and the Esders App sync with each other using the built-in Bluetooth module—much like connecting your Earbuds to your iPhone—and give you and your team the ability to add GPS coordinates, emission type information, date, time, employee’s name, signature, and many other possibilities to comply with both your internal and the EU regulation.
Reporting
The device must be able to generate a report based on the collected data.
Raw data is useful but not enough—you need official reports to submit to authorities. While raw data must remain available as support, our Esders Connect App features an automated reporting tool. Once the data is collected, the app will automatically generate a compliant report for you.
System integration
The reporting mechanism must be easy to integrate into your existing systems.
One common concern: how do I integrate this into my current system?
Good news: You don’t have to.
Esders Connect operates independently from your current system (GIS, etc.) and generates and send PDF reports that you can store on any system you desire—so there’s no need for integration or system overhauls. Just ask your field team to download the app from the App Store or Play Store, and you’re good to go.
System integration
The reporting mechanism must be easy to integrate into your existing systems.
Using the Esders solutions outlined above, your team can already complete source-level reporting and this is how the fully automated sequence looks like:
But what about site-level?
The regulation requires vehicle-based or aerial detection for site-level reporting, and the results must match the sum of your source-level measurements. This can introduce new layers of complexity.
The Solution?
Let’s close that loop.
Laser Hunter is the core of a modular system. This system enables Laser Hunter to be mounted on vehicles for mobile (vehicle-based) leak detection. Since vehicle-based monitoring is what is required by the EU regulation, this modular approach allows you to simultaneously perform both site-level and source-level monitoring—transforming a linear sequence into a closed-loop cycle.
