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GECF Position on EU Climate Measures Affecting Natural Gas Markets

04 October 2026 |

Context


Natural gas accounts for approximately one-quarter of the global primary energy mix and plays an indispensable role in supporting economic development, reliable electricity, industrial production, food security and access to modern energy. For many developing economies, the responsible development of natural gas also provides a pathway to domestic value creation, industrialisation and greater resilience against energy and commodity shocks.
Natural gas contributes directly to addressing climate challenges. Coal-to-gas switching has played an important role in reducing the carbon intensity of power generation worldwide, while gas-fired generation complements variable renewable energy by providing reliable and flexible supply when intermittent generation is unavailable. Natural gas can also support the development of lower-carbon hydrogen, particularly when combined with effective methane-emissions management and carbon capture and storage. GECF considers natural gas an enduring pillar of future energy systems, essential to energy availability, accessibility, affordability and sustainability and to progressively lower-emission pathways.
Looking ahead, GECF foresees sustained growth in demand for natural gas over the decade ahead as the global population and economy expand. GECF Member and Observer Countries, holding around 70% of global proven gas reserves, are committed to meeting this demand responsibly. Their investments across the natural gas supply chain have helped strengthen economic resilience and continue to support energy security and access.
The stability of long-term contracts and the predictability of market-access conditions are particularly important for natural gas and LNG investment. Major upstream, pipeline and liquefaction projects require substantial initial capital, long development periods and long-term commercial arrangements to support financing. Uncertainty over future compliance costs, contractual responsibilities and access to major markets may delay both new supply investment and the methane-abatement investment needed to improve the environmental performance of natural gas. Preserving this investment momentum and avoiding disruptions to future gas supply are therefore essential to meeting demand and maintaining secure, affordable and progressively cleaner energy.
GECF recognises that the environmental performance of natural gas must continue to improve and supports concerted action to reduce methane emissions and advance lower-emission technologies. To amplify the environmental benefits of natural gas, GECF Member and Observer Countries are reducing flaring, limiting methane emissions and advancing carbon capture and storage technologies. Methane and carbon mitigation measures are already incorporated, to varying degrees, into national climate commitments, energy strategies, regulatory frameworks and operational programmes across GECF Member and Observer Countries. Their scope and pace appropriately reflect national circumstances, institutional capacities and development priorities.
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GECF acknowledges the European Union’s sovereign right to pursue its climate objectives and supports global efforts to reduce methane and carbon emissions, while emphasising the equally important sovereign rights of producing countries to determine their energy, environmental and development policies in accordance with their national circumstances, capabilities, priorities and international commitments.
GECF notes that the EU presents these measures as a means of establishing minimum environmental standards, promoting a level playing field and addressing the perceived limitations of voluntary approaches. However, formally uniform requirements may still produce unequal impacts where countries differ significantly in their national circumstances, capabilities and access to finance and technology. At the same time, climate action affecting international markets should be fair, proportionate, predictable and consistent with internationally agreed principles.
GECF therefore enters this discussion as an advocate for effective and technically workable climate action that respects multilateralism, international cooperation, national circumstances, differentiated responsibilities and the development priorities of producing countries.

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