EU proposes waiving methane penalties for three years amid energy crisis

The European Commission has proposed waiving penalties for non-compliance with the EU's methane emissions rules for three years, citing energy security concerns amid the Middle East conflict and Strait of Hormuz blockade.

What was proposed

On Monday, the Commission recommended that member states not apply penalties from 2027 to 2030 for the EU Methane Regulation, adopted in May 2024. The non-binding guidance also includes optional model contract clauses for importers to ensure compliance. Source: euronewsen

Reasons and pressure

The move follows months of lobbying from the US, Qatar, Algeria, and Nigeria, who warned that strict penalties could disrupt energy supplies. US Energy Secretary Chris Wright and other officials wrote to the EU in June. Source: aljazeera A group of 17 EU member states also requested a delay. Source: aljazeera

Criticism

Environmental groups argue that the waiver weakens one of the world's most ambitious methane reduction efforts. Esther Bollendorff of Climate Action Network Europe said a "three-year sanction holiday... risks giving a free pass to methane-intensive gas imports – notably from the US." Source: euronewsen

Industry reaction

While industry groups welcome the recognition of flaws, they say non-binding guidance is insufficient, calling for targeted amendments. Source: euronewsen The Commission noted that all obligations continue to apply, only penalties are suspended. Source: aljazeera