Economy 5 min read By Bethany Hadley
EU Proposes Delay to Methane Rules for Oil and Gas Imports
The European Commission has proposed postponing the application of methane emissions rules for oil and gas imports, a move that would give foreign suppliers more time to comply with the bloc's strict new standards.
The European Commission has proposed delaying the application of methane emissions rules for oil and gas imports, a decision that would grant foreign suppliers additional time to meet the European Union's stringent new requirements. The proposal, which still requires approval from EU member states and the European Parliament, marks a significant concession to international energy partners who have warned that the rules could disrupt supply chains and raise costs.
The methane regulation, part of the EU's broader strategy to cut greenhouse gas emissions, was designed to hold both domestic and imported fossil fuels to the same standard. It requires companies to monitor, report, and verify methane emissions across the supply chain, with importers obligated to demonstrate that their products meet EU benchmarks. The rules were originally set to take full effect in the coming years, but the Commission now suggests a phased implementation for imports, citing the need to avoid market shocks and to allow producers in Africa, the Americas, and the Middle East to adapt their operations.
Methane is a potent greenhouse gas, with a warming potential many times that of carbon dioxide over a 20-year period. The EU has positioned itself as a global leader in methane abatement, and the regulation is a cornerstone of its efforts to meet climate targets under the European Green Deal. However, the bloc relies heavily on imported oil and gas, and major suppliers — including the United States, Norway, Algeria, and Qatar — have raised concerns about the feasibility of complying with the rules on the original timeline. Industry groups have argued that the necessary monitoring technology and infrastructure are not yet widely available, particularly in regions with less developed regulatory frameworks.
The proposed delay is likely to be welcomed by energy companies and trading houses that have warned of potential supply disruptions and higher prices for European consumers. It also reflects a broader tension within the EU between ambitious climate action and the immediate need to secure affordable energy supplies, especially in the wake of the energy crisis triggered by Russia's invasion of Ukraine. The Commission has stressed that the delay does not weaken the regulation's objectives but instead ensures a smooth and orderly transition.
Environmental campaigners have criticised the move, arguing that postponing the rules undermines the EU's credibility on climate leadership and gives polluters a free pass. They contend that methane emissions from oil and gas production are often easy and cheap to reduce, and that delaying action will result in unnecessary warming. The Commission, however, maintains that the phased approach will ultimately lead to better compliance and more accurate data, as it allows time for international standards to converge.
The proposal will now be scrutinised by the European Parliament and the Council of the EU, where some member states may push for a shorter delay or additional conditions. The outcome will be closely watched by energy markets and by the EU's international partners, as it signals how the bloc intends to balance its climate ambitions with the realities of global energy trade. If approved, the delay would represent one of the most significant adjustments to the EU's methane framework since its inception, and could set a precedent for how the bloc regulates emissions embedded in imported goods.
For British businesses, the development is particularly relevant. The UK is a major producer of oil and gas and a significant supplier to the EU, and any easing of the timeline could reduce compliance costs for British exporters. At the same time, the UK has its own methane reduction commitments, and divergence from EU rules could create friction for companies operating in both markets. The Commission's proposal is expected to be discussed in the coming weeks, with a final decision likely before the end of the year.
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