Key Moments
-
The United States called on the European Union to exclude U.S. oil and gas
from methane import rules until October 2035, according to a U.S. government document. -
The EU methane regulation requires importers to monitor and report emissions
and will tighten obligations on fuel imports over time. -
Additionally, the U.S. asked the EU to recognize U.S. methane rules as equivalent
and to avoid penalizing U.S. exporters under the EU regime.
U.S. Seeks Long-Term Exemption From EU Methane Regulation
BRUSSELS, Dec 15 (Reuters) – A U.S. government document reviewed by Reuters
shows that Washington asked the EU to exempt U.S. oil and gas from methane
emissions rules until 2035.
The EU methane framework, effective this year, requires importers to track
and report emissions linked to oil and gas supplies. The policy aims to reduce
methane, a powerful contributor to global warming.
Resistance to the regulation comes from U.S. Energy Secretary Chris Wright.
He argued the law is impractical and warned it could interfere with U.S. gas deliveries.
Meanwhile, European buyers continue increasing purchases of U.S. liquefied natural gas
as they reduce reliance on Russian energy.
Details of the U.S. Request
The U.S. document states that, if the EU does not repeal the methane law,
Washington wants Brussels to postpone reporting obligations for U.S. suppliers until October 2035.
The document described the EU rules as “a critical non-tariff trade barrier
that imposes an undue burden on U.S. exporters and our trade relationship.”
It was circulated to EU member states before a scheduled energy ministers meeting in Brussels.
The U.S. Department of Energy did not immediately respond to a request for comment.
EU Response and Implementation Concerns
Last week, the EU announced more streamlined options to demonstrate compliance
with methane rules. These changes aim to simplify reporting for complex supply chains
such as those in the U.S., where a single LNG cargo may contain gas from many sites.
EU Energy Commissioner Dan Jorgensen said discussions with the U.S. continue.
However, the EU will not dilute the regulation, which will gradually enforce stricter conditions.
“We are trying to be as helpful as possible regarding implementation,” Jorgensen said.
“However, the legislation stands. We are not considering withdrawal or exemptions.”
Methane is the second-largest contributor to global warming after carbon dioxide.
Equivalence Request and Potential Trade Tensions
The U.S. also urged the EU to treat U.S. methane rules as equivalent.
This would automatically deem U.S. producers compliant under EU rules.
Additionally, Washington sought assurances that the EU would not penalize U.S. imports.
Industry sources said equivalence seems unlikely, pointing to past U.S. rollbacks
of emissions reporting rules under the Trump administration.
Industry Lobbying and Future Obligations
A joint document from U.S. and EU oil and gas trade groups suggested adjustments
to the EU methane regime. Among the proposals was a delay of stricter obligations due in 2027.
Dan Byers, VP for policy at the U.S. Chamber of Commerce, said the rules are
“uniquely complicated for the United States, where countless producers co-mingle molecules.”
Regulatory Timeline and Key Requests Overview
| Item | Description |
|---|---|
| Start of EU methane monitoring and reporting | Effective this year for all oil and gas imports into Europe |
| U.S. requested delay for reporting under EUMR | Postpone U.S. emissions data reporting until October 2035 |
| Future EU obligations | Requirements on fuel imports tighten over time, with stricter measures starting 2027 |
| U.S. equivalence request | EU to treat U.S. methane rules as equivalent and avoid penalties for U.S. imports |
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