EU methane regulation faces delay amid concerns over energy supplies

The changes must still be negotiated with EU member states before they can enter into force.

Key methane reporting deadlines could move to 2031

Under Parliament’s position, importers of crude oil, natural gas and coal would have until May 31, 2031, to demonstrate that supply contracts concluded or renewed since August 4, 2024, cover fuels subject to methane monitoring, reporting and verification measures equivalent to EU standards.

The requirements were originally scheduled to begin applying to importers in January 2027.

The adopted position also includes the following changes:

• Methane intensity reporting: The deadline for importers and EU producers to report the methane intensity of fossil fuels placed on the European market would move to August 5, 2031.
• EU oil and gas operators: Certain source- and site-level methane emissions reporting obligations would be postponed by three years, to 2030 or 2031 depending on the assets concerned.
• Sanctioned energy imports: The extended deadlines would not apply to relevant oil, gas and coal imports from countries subject to EU sanctions restricting or prohibiting those imports.
• Implementation review: The European Commission would be required to assess implementation readiness and energy supply security by July 1, 2029.

The proposed changes would postpone specific obligations under the regulation rather than repeal the existing framework.

Energy security concerns drive postponement

The vote comes amid concerns about the impact of methane reporting requirements on Europe’s energy supplies, particularly imports from countries outside the EU. Under the existing framework, fossil fuel importers must demonstrate that their suppliers meet monitoring, reporting and verification standards equivalent to those applied within the EU.

Several governments and energy companies have argued that additional time is needed to establish the required verification systems and avoid potential disruptions to fuel deliveries.

The United States, a major supplier of liquefied natural gas (LNG) to Europe, has also raised concerns about the requirements and their potential implications for energy trade.

Supporters of the postponement argue that extending the deadlines would allow companies and authorities to prepare while maintaining the regulation’s methane reduction objectives.

However, environmental organizations have criticized the proposed delay, warning that postponing implementation could slow efforts to address methane emissions associated with fossil fuel production and supply.

Implications for LNG supply chains and shipping

The proposed amendments are relevant to maritime transport through the EU’s reliance on seaborne LNG and crude oil imports. A postponement would give LNG exporters, importers and other energy suppliers additional time to establish systems for documenting and verifying methane emissions across their supply chains.

The implications are particularly relevant for long-term LNG supply contracts and the monitoring of emissions associated with natural gas production and transportation.

However, the proposed amendments do not directly change methane-slip requirements for LNG-fueled ships or existing maritime emissions regulations, including FuelEU Maritime and the EU Emissions Trading System.

The EU Methane Regulation primarily addresses methane emissions in the energy sector, while greenhouse gas emissions from ships are covered by separate maritime regulatory frameworks.

Further negotiations required

The Parliament’s vote establishes its negotiating position but does not change the legally applicable deadlines. The proposed amendments must now be discussed with the Council of the EU before a final legislative agreement can be reached.

EU governments have yet to agree on a common position, with further discussions expected on October 28. Until the legislative process is completed, the existing requirements under the EU Methane Regulation remain in force.