The United States has requested that the European Union exempt it from obligations to report emissions data under the EU Methane Regulation until 2035. This development comes as the U.S. gas industry lobbies for significant changes to the EU’s climate laws, which it argues could jeopardize Europe’s energy supply and security. According to a document circulated among EU governments and reported by Reuters, the U.S. maintains that if the legislation is not fully repealed, it should be granted a delay in reporting emissions data.
The EU Methane Regulation, set to take effect on August 4, 2024, aims to curb methane emissions from the energy sector. A key requirement for importers, effective from January 2027, mandates that natural gas, crude oil, or coal imported into the EU must come from jurisdictions with equivalent monitoring, reporting, and verification standards to those applied within the EU.
U.S. officials have expressed concern that the current regulatory framework could compel LNG importers to divert shipments away from the EU, particularly as Europe seeks to phase out reliance on Russian gas. This would lead to a tighter gas supply during a critical transition period for European energy. Major LNG exporter Qatar is also advocating for amendments to the same set of regulations, which have drawn criticism from other industry leaders, including ExxonMobil.
ExxonMobil’s CEO, Darren Woods, has publicly condemned the EU’s proposed Corporate Sustainability Due Diligence Directive (CSDDD), calling it “the worst piece of legislation” he has encountered during his tenure. The CSDDD aims to impose penalties on companies for non-compliance, further intensifying pressure on U.S. and Qatari interests in the European market.
The U.S. government document emphasizes the necessity of a delay for U.S. emissions data reporting under the EU methane regulation until October 2035. This request underscores the ongoing negotiations between the U.S. and EU as both sides grapple with the complexities of transitioning to cleaner energy while maintaining security and supply chain integrity.
As the discussions continue, the ramifications of these regulatory frameworks on the energy landscape remain significant. The U.S. and Qatar’s advocacy for exemptions highlights the delicate balance between environmental objectives and energy security in a rapidly evolving market.
