Technology and Science20 July, 20262 min read
European Union Orders Member States To Hold Off Methane Fines Until End Of 2029
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EU to suspend methane penalties for three years. Penalties not applied during 2027–2030 to prevent energy disruptions.
EU pauses methane fines
The European Union on Monday told member states to hold off imposing fines on oil and gas firms over planet-warming methane emissions for three years, after pressure to pause new rules. The European Commission said EU countries should refrain from handing out fines until the end of 2029 to energy importers that fail to do their reporting, while importers are required to monitor and report on methane emissions from January under the reform.
The Commission framed the move as a way to ensure "security of supply in a context of global energy markets tightness caused by the ongoing blockade of the Strait of Hormuz and the conflict in the Middle East." The Reuters report said the Commission instructed EU governments to waive penalties for three years for oil and gas companies that breach its methane emissions law, with the Commission saying the waiver would apply in 2027, 2028 and 2029 to "to avoid supply disruptions."
Law stays, penalties stop
The methane emissions law is set to be enforced from January 2027, requiring imported gas to adhere to emissions monitoring standards equivalent to Europe’s, but the Commission recommendation stops short of amending the law itself. Reuters said the law had been designed so that companies failing to comply could face fines up to 20% of their annual turnover, while the Commission official said national courts are obliged to take the recommendation into account.
Al Jazeera reported that the EU Methane Regulation would have seen companies face fines of up to 20 percent of annual turnover for failing to comply with European-equivalent emissions monitoring rules, even as the Commission said the suspension would give importers time to reach compliance. The Commission also said that "all obligations arising from the regulation will continue to apply," while the recommendation is not legally binding but courts are required to take it into account.
Pressure and climate stakes
A dozen of the EU’s 27 nations called for a delay in implementation, saying the rules would narrow Europe's supplier base at a time when energy markets are still reeling from the US-Iran war. The Reuters report said the U.S., Qatar, oil and gas industry groups, and most EU member states demanded changes to the law, and it noted that a group of 17 of the EU’s 27 member states, including Germany and the Czech Republic, asked the EU to delay the law.
The United Nations last month urged renewed efforts to reduce methane emissions, which the BSS/AFP report said account for one-third of greenhouse gas warming and are about 80 times more potent than CO2, while the fossil fuel sector accounts for 35 percent of methane released by human activity. In response to the suspension, environmental groups have called on the EU to maintain its methane rules unchanged, and Al Jazeera said environmental groups have sought to hit back, urging Brussels to keep the penalties in place.