Methane Regulation and Its Global Importance
Starting January 2027, all oil and gas imported into the European Union will have to meet strict monitoring, reporting, and verification requirements for methane emissions. Methane is a short-lived but powerful greenhouse gas—up to 30 times more potent than carbon dioxide—and a key driver of climate change.
A group of 24 US lawmakers has urged the EU not to exempt American energy producers if domestic standards fall short. In a letter obtained by Euronews, they called the EU rules a “critical tool” to prevent wasteful venting and flaring of natural gas. The lawmakers argued that consistent rules across all suppliers are essential to reduce trade barriers and reward producers who invest in methane-reduction technologies.
EU Offers Implementation Options, Not Loopholes
To help companies comply, the European Commission recently outlined two simplified approaches. One allows for third-party verification of emissions at production sites, while the other uses a digital “trace and claim” system that tracks fuel volumes through the supply chain.
Despite these simplifications, the core requirements of the law remain unchanged. As of January 2027, importers will still be responsible for monitoring and reporting methane emissions from all producers and exporters. A Commission spokesperson emphasized that no exemptions are planned, saying the EU remains committed to the law’s ambition while working with industry and the US to ease its implementation.
US Industry Faces Uncertainty
The US Environmental Protection Agency strengthened methane rules in 2024 to align with EU standards but delayed reporting and mitigation requirements in 2025, creating uncertainty for producers. Environmental experts say strong, enforceable standards like the EU regulation give companies that have already invested in emissions management a competitive advantage.
Jonathan Banks of the Clean Air Task Force noted that the lawmakers’ letter reflects a growing “transatlantic and global consensus” on the need for methane reductions. Methane, produced from fossil fuels and livestock, contributes to roughly 30% of global warming since the industrial revolution, according to the International Energy Agency.
