Europe’s biomethane market moves toward long-term stability
Last week, on a flight to Milan for my grandfather’s 90th birthday, Gaia Ruzzante listened to a podcast discussing the war in Iran and its wider macroeconomic impact. Different subject, same conclusion: the way we consume energy today is not sustainable.
Flying over the Alps, it was hard not to think about how connected natural systems already are. Water, land, agricultural residues, and organic waste all form part of a loop that, if managed properly, can produce local and renewable energy. That is what makes biomethane so interesting. The challenge is that projects are still difficult to finance, with high capex and operating costs remaining major barriers.
At Greensteps, Gaia Ruzzante works with French and Italian producers to connect them with the right offtakers and help make projects commercially viable.
Two recent regulatory developments show how policy is starting to shape the long-term stability of the biomethane market.
In Italy, Decree-Law No. 21/2026, known as “DL Bollette”, is currently being converted into law. The legislation limits the indirect pass-through of Guarantee of Origin (GO) value into pricing and instead ties contracts more closely to real production and supply costs. ARERA and the GSE are expected to introduce standard contractual clauses to support the transition.
In France, the Certificats de Production de Biogaz (CPB) mechanism entered into force in January 2026. The framework requires gas suppliers to increase biomethane usage or face financial penalties. Producers can generate additional revenue by monetising CPBs through bilateral agreements and combining them with Biogas Power Agreements (BPAs), although the structure beyond 2028 is still being discussed.
Both developments point in the same direction: more predictable markets, stronger local value creation, and less dependence on short-term energy volatility.
The regulatory framework is gradually falling into place. The next step is building the commercial momentum needed to scale the market further.
That is where Greensteps focuses. The company works with producers and offtakers across Europe, structures long-term agreements that support project financing, and helps market participants navigate changing regulation in a commercially workable way. From securing offtake to optimising revenue streams, the goal is to turn regulatory progress into projects that actually get built.
