The European Commission has told EU governments to waive penalties for oil and gas companies that breach its methane emissions law for three years. The move answers pressure from the United States, Qatar, industry groups, and most member states worried about securing fuel supplies. Environmental campaigners warn it hands methane-heavy gas imports a free pass.
The European Commission has advised EU governments to waive penalties for oil and gas companies that breach its methane emissions law for the next three years, citing pressure from the United States to scrap the rules. The decision is not binding, but many member states are expected to follow the guidance.
Energy security drove the retreat
Brussels acted after the U.S. and Qatar, alongside industry groups and most EU governments, demanded change to the strict rules. Several states feared Europe could not secure fuel once the rules took effect in January 2027, because energy companies might fail to supply gas imports meeting the emissions standard.
The Commission tied the shift to tight global markets caused by the blockade of the Strait of Hormuz. The corridor between Oman and Iran has been almost completely closed since February, following the U.S.-Israeli-led war on Iran. It normally carries around 20% of the global petroleum liquids and gas supply when fully operational.
A world-first law paused
The natural gas rules, adopted in 2024, built the first EU framework for measuring, reporting, and verifying methane emissions in the energy sector. Yet the Commission said that while methane is the second-greatest contributor to climate change, geopolitical developments in the Middle East are reshaping the global energy system.
Methane heats the planet up to 80 times more than carbon dioxide over two decades. The energy sector produces over 35% of methane emissions from human activity. Once enforced, the law lets regulators fine non-compliant companies up to 20% of their annual turnover.
Campaigners and a wider rollback
Esther Bollendorff of Climate Action Network Europe warned that the three-year sanction holiday could let methane-heavy gas imports escape penalties, notably from the U.S. Meanwhile 17 EU member states had also requested that the law be delayed.
The waiver arrives alongside a broader softening of climate policy for businesses. The Commission has proposed letting some industries extend a decarbonisation deadline to 2038, from 2034 at present. According to Oilprice, EU climate commissioner Wopke Hoekstra said the bloc was “adopting a more business-friendly and, may I say so, savvy approach”.
Source: Oilprice.com
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