European Competitiveness at Risk: Scaling Sustainable Biomethane a Strategic Imperative

This vulnerability is structural. In 2024, the EU imported 90% of its gas consumption, underscoring a deep reliance on external suppliers that directly affects both energy security and industrial competitiveness. Strengthening energy independence through domestic, sustainable solutions, such as biomethane, must therefore become a strategic priority for the European economy.

Against this backdrop, the current geopolitical and economic context has further increased energy prices for Europe’s key industrial manufacturers, putting mounting pressure on the continent’s industrial base. At a recent meeting in Antwerp, leading industry executives warned that persistently high energy costs are eroding competitiveness and accelerating investment leakage. Yet Europe’s competitiveness cannot be restored by weakening its flagship policies. On the contrary, it must be built on energy security, climate leadership, regulatory certainty, and the rapid deployment of competitive renewable solutions.

This debate has come into sharp focus with the European Commission’s recent proposal to introduce an exemption to the Carbon Border Adjustment Mechanism (CBAM) through Article 27a. The proposal has raised serious concerns among European industrial players already investing in ambitious decarbonization pathways. CBAM plays a crucial role in preventing carbon leakage and ensuring a level playing field for EU industry as it transitions to low-carbon production. Introducing exemptions risks weakening incentives for decarbonization and creating uncertainty for investment decisions at a time when stability and predictability are essential.

In particular, proposals by several Member States to exempt fertilizers from CBAM would undermine the instrument’s purpose. This is especially concerning given that sustainable production of biogases can already deliver organic fertilizers for European farmers if digestate, as a co-product of this production process, is properly valorized. Today, the sector already generates around 25 million tonnes of digestate annually.

In light of this, the EBA calls for an accelerated rollout of biogases as a driver of renewable energy made in Europe. Across the EU-27, biogases already account for around 6% of total gas consumption, with biomethane growing rapidly as a direct substitute for natural gas. By 2040, the sector could produce up to 100 bcm of biogases, meeting an estimated 80% of EU gaseous fuel demand while strengthening energy security, defossilisation of industry and transport and sustainable agriculture. The biogases value chain stands ready to accelerate Europe’s transition through renewable energy production, sustainable organic fertilizers, and the capture and reuse of biogenic CO₂, reinforcing industrial resilience while reducing fossil dependence with resources made in Europe.

“Europe’s energy future must be built on our own renewable solutions. Biogases are scalable and ready today to strengthen our security, support our industries and farmers, and drive the EU’s transition to a competitive, low-carbon economy. Now we need the policy framework to match that potential,” said Harmen Dekker, CEO of the European Biogas Association.

Note for editors

About biogas and biomethane (biogases): Biogas is produced from the decomposition of organic materials. These residues are placed in a biogas digester in the absence of oxygen. With the help of a range of bacteria, organic matter breaks down, releasing a blend of gases: 45 – 85 vol% methane (CH4) and 25 – 50 vol% carbon dioxide (CO2). The output is a renewable gas which can be used for multiple applications. Biomethane – purified biogas – is a renewable alternative to natural gas. Its multiple applications include heat and power supply for our buildings and industries, and renewable fuel production for the transport sector.

Impact of biogases beyond energy: Beyond energy, biogas plants operate as modern biorefineries, transforming waste into high-value products that directly strengthen the EU bioeconomy. Biomethane can be converted into hydrogen, methanol, or syngas for bio-based chemicals and plastics, reducing reliance on imported fossil fuels. Digestate, as a nutrient-rich co-product, can be processed into bio-fertilizers, improving soil health, supporting food security, and replacing fossil-based alternatives. Likewise, biogenic CO₂ can be captured for industrial uses, including e-fuels, greenhouses, food and beverage production. By generating multiple circular products alongside renewable energy, biogas systems create a low-carbon, resource-efficient value chain that boosts industrial competitiveness and advances Europe’s circular bioeconomy.

Press contact: Ángela Sainz Arnau, EBA Communications Director sainz@europeanbiogas.eu