Lawmakers Push for Equal Treatment of Energy Suppliers
Starting January 2027, all companies importing oil and gas into the European Union must meet strict monitoring, reporting, and verification rules for methane emissions from their suppliers. Methane is a potent greenhouse gas—up to 30 times more damaging than carbon dioxide in the short term.
A group of 24 US lawmakers has written to the European Commission urging it not to grant exemptions to American energy producers if domestic US standards fall short. They describe the EU’s methane regulations as a “critical tool” to prevent wasteful venting and flaring of natural gas, and emphasize that consistent rules across suppliers help reduce trade barriers and reward companies that invest in methane-reducing technologies.
The signatories include Senators Sheldon Whitehouse and Representatives Scott Peters, Dan Goldman, Jared Huffman, Kathy Castor, Laura Friedman, and Mike Quigley. Their call contrasts with US Energy Secretary Chris Wright’s earlier criticism of the law, which he said could disrupt trade. The timing is sensitive, given the EU-US energy deal under negotiation, expected to involve roughly $750 billion in oil, gas, and nuclear purchases by 2028.
EU Offers Simplified Compliance, Not Exemptions
To ease the law’s rollout, the European Commission has presented two options to member states. Companies can either use third-party certificates verifying emissions at production sites or adopt a “trace and claim” system, which assigns a digital ID to fuel volumes to track them through the supply chain.
Despite these adjustments, the law’s core requirements remain unchanged. Importers will still need to meet methane monitoring, reporting, and verification standards by January 2027. A Commission spokesperson emphasized that exemptions are not planned, stating that Brussels is “standing by the law’s ambition” while engaging with US partners to support practical implementation.
Uncertainty for US Industry Remains
US energy companies face uncertainty after the Environmental Protection Agency delayed and suspended stricter methane rules in 2025, including a proposed pause on reporting until 2034. This shift has raised concerns for firms exporting to Europe and for international climate commitments.
Jonathan Banks, global director at the Clean Air Task Force, said the lawmakers’ letter highlights a growing transatlantic and global consensus on reducing methane emissions. “Companies that already invest in measuring and managing methane have a competitive edge. Strong, enforceable standards like the EU’s provide the certainty serious producers need,” he said.
Methane, emitted from fossil fuel production and livestock digestion, contributes significantly to global warming. According to the International Energy Agency, it accounts for about 30% of the global temperature rise since the industrial revolution.
