EU proposes one-year delay to methane rules for oil and gas imports

The European Commission on Wednesday proposed a one-year delay to the European Union's methane emissions rules for oil and gas imports, Reuters reported.The rules, scheduled to take effect on January 1, 2027, would require foreign oil and gas suppliers to monitor and report methane emissions associated with their supplies to the EU.The proposal follows pressure from governments, including France and the United States, amid concerns over energy supplies and compliance requirements.France had urged the European Commission to postpone the methane rules, while the United States and energy companies also raised concerns about their impact on fuel supplies and importers' compliance obligations.More than a dozen EU member states, including Germany, had called for a delay or suspension, amid concerns that the requirements could create additional costs and legal uncertainty for suppliers.The proposed delay comes as Europe faces tighter gas markets and concerns over energy security. Lower-than-usual gas storage levels and disruptions to global liquefied natural gas supplies have increased pressure on European governments to secure fuel ahead of winter.Reuters reported on October 12 that European gas storage was expected to reach only 75 to 78 per cent of capacity by November, below the five-year average.

What are the EU's methane emissions rules?The European Union adopted its methane regulation in 2024 to curb emissions from the energy sector and reduce the release of methane during the production, processing, transport and storage of fossil fuels.The regulation covers oil, natural gas and coal, as well as methane emissions associated with fossil fuels imported into the bloc.Methane is a potent greenhouse gas that traps significantly more heat than carbon dioxide over a 20-year period.

Reducing methane leaks from oil and gas operations is considered an important measure to slow global warming.Under the regulation, companies operating within the EU must measure, monitor, report and verify methane emissions and carry out leak detection and repair. The rules also restrict routine venting and flaring, subject to specified exceptions.For imports, the regulation requires EU importers to provide information about methane emissions and the monitoring, reporting and verification practices followed by producers outside the bloc. These requirements are intended to ensure that imported fossil fuels are covered by comparable emissions transparency standards.