Europe Weighs Methane Rule Delay as Energy Supply Risks Mount

The European Union’s new methane regulation, which expands methane measurement, reporting and verification requirements to foreign suppliers, is due to apply to imports from January. Energy Commissioner Dan Jorgensen told Bloomberg his services are examining whether to postpone the import-focused portion of the rule by one year to avoid disrupting energy supplies and prices. The proposed delay would give market participants more time to implement the new obligations, Jorgensen said. Large external suppliers have objected to the EU’s plan, arguing the obligation to track every hydrocarbon molecule’s methane footprint through the supply chain is impractical. The United States and Qatar have repeatedly warned the regulation could hurt bilateral trade and security of supply; Qatar has previously stated it would stop selling LNG to EU members. U.S. Energy Secretary Chris Wright also suggested the measure could damage trade ties. Analysts and industry sources point to a practical verification gap: Wood Mackenzie notes no agency has yet been accredited to verify methane measurement and reporting for production outside the EU, and importers have said they will not accept non-compliant evidence because of legal and reputational risks. Valentina Kretzschmar of Wood Mackenzie described most non-EU exporters as unready to meet the EU’s equivalence standards within the current timetable, in part because the verification mechanism remains unspecified. That uncertainty comes as Europe faces tight fuel markets and elevated prices, with gas trading above 70 euros per MWh in the reporting. Brussels has discussed options such as postponing penalties for non-compliance, but reporting requirements would remain. Observers warn that if producers reroute cargoes to buyers in Asia or elsewhere rather than comply, EU buyers could see shortfalls in the middle of winter. Policymakers in Brussels are weighing whether to delay, adjust or abandon the import component to balance climate objectives with immediate energy-security needs.