Report Flags Emissions Blind Spot for Europe’s Gas Pipeline Operators
A new analysis warns Europe’s gas pipeline operators may be underreporting emissions by excluding the climate impact of gas they transport, raising questions about transparency, investor risk and long-term viability.
(P&GJ) — A new report is raising concerns about emissions transparency across Europe’s natural gas pipeline sector, warning that gas transmission system operators (TSOs) may be significantly understating the climate impact of their networks by excluding emissions tied to the end use of the gas they transport.
According to the report by the Institute for Energy Economics & Financial Analysis (IEEFA), gas moved through European pipeline networks ultimately generates roughly 800 million tonnes of carbon dioxide annually when burned, representing nearly 30% of the European Union’s total fuel-combustion emissions in 2022. Yet these so-called “transported emissions” are largely excluded from operators’ Scope 3 disclosures, despite being far larger than the emissions TSOs currently report.
The report argues that while gas TSOs do not own or sell the fuel they transport, excluding combustion-related emissions conflicts with the sector’s push to position itself as a core player in the energy transition. Many operators are promoting a shift toward so-called “multi-molecule” networks that would eventually carry hydrogen, biomethane and captured carbon dioxide, while continuing to rely on existing pipeline assets.
The analysis examined six major European gas TSOs — Snam, NaTran, Enagás, Fluxys, Open Grid Europe and Gasunie — and found that transported emissions are, on average, about 150 times higher than the emissions currently reported across Scopes 1, 2 and 3 combined.
Only two operators, Snam and Gasunie, publish estimates of transported emissions, according to the report. The remaining companies either do not disclose the data or provide incomplete information, forcing analysts to rely on estimates.
The report also points to inconsistent guidance from emissions standard-setters as a key reason for the disclosure gap. While organizations such as CDP and the Science Based Targets initiative have previously recommended reporting transported emissions, the Greenhouse Gas Protocol has not provided definitive clarification, and sector-specific European sustainability standards remain on hold.
Analysts warn that the lack of transparency could distort risk assessments for investors and lenders, particularly as gas demand declines and pipeline utilization comes under pressure. By reporting only smaller upstream and operational emissions, the report argues, pipeline operators may appear less exposed to transition risk than they actually are.
The authors urge regulators, investors and standard-setters to require gas TSOs to quantify and disclose transported emissions as part of Scope 3 reporting, arguing that full transparency is essential for accurately assessing long-term financial and regulatory risk in Europe’s midstream gas sector.