EU court calls for methane-slip limit on LNG ships – Opportunity Green

The European Commission must set a “quantifiable limit” for methane slip from LNG-powered dual-fuel ships under its sustainable investment criteria, according to Opportunity Green.

IMAGE: Smoke from a vessel's exhaust. Getty Images

The General Court in Luxembourg is part of the Court of Justice of the European Union and hears legal challenges brought against EU institutions, bodies and agencies, among other cases.

The court “partially annulled” the Commission’s rejection of a request by environmental groups to review shipping and aviation criteria under the EU Sustainable Finance Taxonomy, climate non-profit Opportunity Green said in its interpretation of a General Court ruling published on Wednesday.

The EU Sustainable Finance Taxonomy defines which economic activities count as environmentally sustainable investments, to steer financing towards the shift away from fossil fuels.

The environmental groups challenged criteria introduced in 2023 that allow some ships powered by fossil-based fuels to qualify as sustainable investments.

The existing rules risk allowing LNG-powered ships with significant methane emissions to qualify as green investments, Opportunity Green legal director David Kay said.

The Court found that the Commission had failed to set a threshold for methane slip from ships under the criteria. Methane slip occurs when unburned methane escapes into the atmosphere, including from marine engines using LNG.

According to Opportunity Green, the ruling means the Commission must establish a quantifiable methane-slip limit, but does not prevent LNG-fuelled ships from qualifying as sustainable investments under the Taxonomy.

Dutch campaign group Fossielvrij NL spokesperson Boris Schellekens called the ruling a “small slap on the wrist”. He argued that requiring methane slip to be quantified could still allow LNG-powered vessels to qualify for sustainable investments, depending on the limit eventually set by the Commission.

Opportunity Green said it would study the judgment with its coalition partners and lawyers before deciding whether to appeal. Either party can appeal to the Court of Justice within two months, on points of law.

By Konica Bhatt

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