The European Union (EU) decided to defer sanctions for three years on energy importers that violate methane emissions rules. The move takes into account energy supply instability stemming from worsening conditions in the Middle East and pushback from major liquefied natural gas (LNG) exporters.
The European Commission on the 20th local time recommended that member states not impose sanctions for three years from 2027 to 2029 on corporations that violate methane emissions rules, citing global energy supply instability amid concerns about a blockade of the Strait of Hormuz.
Originally, starting in 2027, the EU planned to apply the same methane emissions standards to natural gas importers as to corporations within the bloc and to impose a penalty surcharge of up to 20% of annual revenue for violations.
However, competition to secure natural gas has intensified since the Middle East war, increasing backlash from European countries and the region's oil and gas industry, while major LNG producers such as the United States and Qatar have continued to demand the withdrawal of the rules.
The United States and Qatar have pressured the EU, warning that if the rules take effect, they could redirect their LNG to markets other than Europe.
Some say the decision will weaken the effectiveness of the methane emissions regulations the EU introduced as the first in the world. Methane is considered a leading greenhouse gas with a far greater greenhouse effect than carbon dioxide.
Still, the EU maintained that it is not fully accepting the demands of major exporters such as the United States, deciding not to scrap the rules themselves but only to temporarily defer sanctions on violating corporations.