Methane Regulations in Focus
Starting January 2027, all companies importing oil and gas into the European Union will need to follow strict rules for monitoring, reporting, and verifying methane emissions from the countries and firms that produce or export the fuel. Methane is a short-lived but highly potent greenhouse gas—up to 30 times more damaging than carbon dioxide over the short term.
A group of 24 US lawmakers has urged the EU to maintain these standards without giving American producers exemptions, especially if domestic US rules are weak or poorly enforced. In a letter obtained by Euronews, the lawmakers said clear, consistent rules are vital to prevent wasteful gas flaring, reduce trade barriers, and reward companies investing in methane-reduction technologies.
EU Offers Flexibility Without Loopholes
The European Commission has proposed two options to make compliance easier. Companies can use third-party certificates verifying emissions at the production site, or adopt a “trace and claim” system that tracks every unit of fuel through the supply chain with a digital ID.
Despite these options, the law’s core requirements remain unchanged. As of 2027, importers must fully comply with monitoring and reporting rules. EU officials emphasized there are no plans to grant exemptions, saying the focus is on a “pragmatic and simple implementation” that balances regulatory goals with energy supply security.
US Industry Faces Uncertainty
The US Environmental Protection Agency strengthened methane rules in 2024 to align with the EU, but then delayed reporting and mitigation requirements in 2025, creating uncertainty for producers and international partners. Environmental experts say the EU regulation rewards companies that have already invested in methane management, offering a competitive advantage while promoting global climate action.
Jonathan Banks from the Clean Air Task Force described the lawmakers’ letter as evidence of a growing “transatlantic and global consensus” on reducing methane. Methane, produced by fossil fuels and livestock, has contributed roughly 30% of the planet’s warming since the industrial revolution, according to the International Energy Agency.
