If you are evaluating biomethane for industrial use, the issue is not only procurement. It is understanding how that benefit holds up across compliance, reporting and communication.
This is the central question: certified biomethane may reduce your EU ETS exposure and generate a real financial benefit, but that does not automatically mean the same benefit can be declared in the same way under GHG Protocol or SBTi.
Your company may find itself in a difficult position: saving on EUA costs under EU ETS while not being able to translate that outcome directly into a Scope 1 reduction claim for reporting purposes. If that gap is misunderstood, the risk is not only technical confusion but also weak documentation, inconsistent communication and potential greenwashing exposure.
This is where Nvalue can create differentiated value. We do not only help you access certified biomethane. We help you understand what the benefit means across compliance, reporting and communication, and how to structure the documentation and claim approach so it remains defensible under scrutiny.
Watch the discussion between Lee Caplen (Corporate Climate Advisor) and Davis Krezins (Business Developer / Future Fuels and Carbon Markets) on how biomethane can affect industrial decarbonisation choices, EU ETS exposure, certification strategy and corporate reporting.
Biomethane for Industry: EU ETS, Certification and Corporate Decarbonisation
Topics covered: what biomethane is, why EU policy is accelerating demand, how biomethane is treated under ETS1 and ETS2, what documentation is required, how biomethane interacts with GHG Protocol and SBTi, and why Proof of Sustainability and Guarantees of Origin do not serve the same purpose.
If your business relies on gas-based heat, combustion processes or other applications where electrification is difficult, biomethane can offer a more practical route than waiting for full equipment or infrastructure change. Because it is produced from organic waste streams, upgraded to natural gas quality and injected into existing gas networks, it can fit within infrastructure you already use.
It is becoming more relevant because policy and market signals are converging. RED III supports renewable energy expansion, the EU ETS increases the cost of fossil fuel emissions, and national climate plans are translating those pressures into real corporate decision-making. For many companies, this turns biomethane into a strategic procurement and compliance question, not just a sustainability topic.
Your company may be able to use it in existing infrastructure without major equipment changes.
In ETS-covered installations, certified biomethane can be treated as zero emissions for compliance purposes, subject to proper documentation.
Your strategy needs valid Proof of Sustainability, auditable mass balance and traceable chain-of-custody systems.
A real regulatory or financial benefit under EU ETS does not automatically become the same type of Scope 1 claim under GHG Protocol or SBTi.
Proof of Sustainability supports compliance. Guarantees of Origin support disclosure and voluntary claims.
For ETS-covered installations, certified biomethane can reduce your company's compliance exposure because operators do not need to surrender EU allowances for the associated fuel use when the biomethane is properly certified in line with EU requirements. This means biomethane can function not only as a decarbonisation option, but also as a cost-management and risk-management tool.
Practical Example
Depending on EUA pricing and the wider business case.
Looking for definitions of the terms used below? See the Glossary.
When certified in accordance with the Renewable Energy Directive (RED), biomethane combusted in installations covered by the ETS does not require the surrender of emission allowances (EUAs).
Under ETS1, the benefit applies directly to the end user, meaning the installation itself. Under ETS2, starting from 2028, the obligation will fall on fuel suppliers, which may reduce their liability by blending or replacing fossil gas with certified volumes.
Without a valid and traceable Proof of Sustainability (PoS), supported by chain-of-custody systems such as ISCC or RedCert, biomethane is treated as fossil gas for ETS reporting purposes.
With EUA prices ranging between €80 and €100 per tonne of CO2, replacing large volumes of natural gas, for example 10 GWh, can generate significant savings in compliance costs, estimated at around €180,000 in the case cited.
GOs track origin and volume for voluntary claims, but the ETS requires a Proof of Sustainability (PoS), which also includes data on feedstocks and greenhouse gas savings.
According to the current GHG Protocol guidance, for biomethane injected into the gas grid, companies must report emissions based on the average grid mix, since the use of certificates alone to adjust Scope 1 emissions is not yet fully recognized.
As the Protocol is currently under revision, including new guidance on the agricultural sector and removals, the present Scope 1 restrictions are considered provisional and may become more flexible in the future.
The main barriers include the lack of harmonized recognition of Proofs of Sustainability across Member States, as well as delays in the full implementation of the Union Database.
Certification bodies and auditors are essential to prevent double counting and ensure transparency, especially with the introduction of new mass-balance rules, such as the recent ISCC guidelines.
At Nvalue, we support industrial companies, utilities and fuel market participants in evaluating how biomethane can be used within a broader compliance and decarbonisation approach. This includes certification strategy, documentary robustness, market access, and alignment across regulatory, reporting and communication needs.
A biomethane claim assessment can help your company understand where the benefit sits, what documentation is required, which claims are supportable, and where extra caution is needed before communicating results internally or externally.
Corporate Climate Advisor · lee.caplen@nvalue.com
Languages: EN / AFR
Lee is a Corporate Climate Advisor at Nvalue, focused on corporate sustainability and decarbonisation strategies. She supports clients in navigating the complexities of Energy Attribute Certificates, EU sustainability regulation, and voluntary disclosure frameworks. Her expertise spans GHG footprinting, sustainability advisory, and policy analysis, with a strong emphasis on practical implementation. Lee is also supporting the development of Nvalue's consulting services, helping companies align compliance with long-term climate goals.
Business Developer — Future Fuels and Carbon Markets · davis.krezins@nvalue.com
Mobile: +31 203 69 78 92 · Languages: LTV / EN / RU
With a background in agriculture, an MBA, and extensive experience trading agricultural commodities and biofuels, Davis now focuses on the biomethane and carbon removal markets. His mission is to help decarbonize the marine, transport, heating, and heavy industry sectors.
With a Swiss DNA founded on integrity and competence, and a commitment to ESG transparency validated by our EcoVadis certification, Nvalue has been a pioneer in environmental markets since 2008. We are a dynamic partner offering liquidity, risk management, and strategic solutions for the energy transition. Our deep market knowledge is backed by our global presence, with offices in Lucerne, Amsterdam, Milan, Varna, and New York, enabling us to provide tailored support for both local challenges and international opportunities.
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