Key facts
- The European Commission is proceeding with new methane emission tracking rules for fossil fuel exporters to Europe, effective 2027.
- Fossil fuel companies argue these rules are unworkable and will lead to supply shortages.
- The Commission has issued guidelines for a three-year grace period on penalties to allow companies more time to comply.
- The EU has seen increased energy imports and payments following recent geopolitical events.
- The International Energy Agency warned that up to 50% of the EU's crude oil imports could become non-compliant under the new rules.
The European Commission is proceeding with new rules requiring fossil fuel exporters to track methane emissions, set to take effect in 2027. The Commission believes that oil and gas companies, driven by profit, will continue to supply Europe despite industry warnings that compliance will be impossible and could lead to significant supply disruptions.
To address concerns, the Commission has issued guidelines recommending a three-year grace period for penalties, aiming to give companies more time to adapt. This move comes as the EU has increased energy imports and payments, particularly from the U.S., following recent geopolitical events. The Commission is confident that companies will prioritize lucrative European markets and that compliance is ultimately achievable.
However, industry lobbyists and some member countries argue that the rules are unworkable and could lead to a substantial portion of the EU's energy supply becoming non-compliant, a concern echoed by the International Energy Agency, which warned that up to 50 percent of crude oil imports could be affected. Despite these warnings, the Commission is resisting calls to reopen the legislation, betting that commercial interests will outweigh the legal uncertainties for exporters.