EU Needs More Than One Solution To Decarbonise Its Gas Market

As the EU moves towards a decarbonised energy system, the role of gas is evolving. Reducing fossil gas dependence can support the EU’s 2050 climate neutrality target, while also raising important questions around security of supply, affordability and competitiveness.

ACER’s 2026 Monitoring Report on decarbonising the EU's gas market examines four key dilemmas:

1. Can renewable gases reduce gas import dependency while keeping energy prices affordable?
2. Will natural gas continue to shape electricity prices during the energy transition?
3. Can the EU decarbonise its gas sector without undermining industrial competitiveness?
4. How can methane emissions be tackled, given the potential for low-cost abatement but rising implementation risks?​

What did ACER monitoring find? 

ACER’s monitoring shows that gas decarbonisation can follow two main strategies: Displacing natural gas, by reducing demand or switching to renewables, and reducing its greenhouse gas footprint, for example through carbon capture, storage and measures to address methane leaks.

• Gas demand reductions are not guaranteed. EU gas demand reached 340 bcm in 2025, up 2% from 2024, which could slow progress towards the EU’s decarbonisation goals. Gas continues to provide system flexibility and remains important for industrial competitiveness.
• Gas still affects electricity prices and industry. Gas-fired power plants were economically competitive in 40% of hours in 2025, while low-carbon electricity systems paid on average 40% less than more carbon-intensive peers.
• Biomethane is promising but still limited. Biomethane is the most mature renewable gas option, but with 4.3 bcm of output in 2024, it represents only 2% of gas network injections.
• Methane emissions remain a supply-chain challenge. 85% of methane emissions linked to EU gas and oil consumption occur outside the EU, making implementation of the EU Methane Regulation key but challenging.

Together, these findings show that no single solution can decarbonise the gas sector. A balanced portfolio of technologies and policy measures will be needed, including electrification, biomethane, hydrogen, carbon capture and storage, methane emissions reduction and clean flexibility solutions.

Webinar

On 24 September 2026, ACER will hold a webinar to present the main findings of this report. Register for free.