EC releases proposal to delay methane import requirements by one year

The European Commission has released a proposal Oct. 14 to delay importer requirements under the EU's landmark methane emissions regulation by one year.

The proposal follows recent comments from EC President Ursula von der Leyen and Energy Commissioner Dan Jorgensen that the commission would make such a move amid sustained market turmoil linked to the Middle East war.

"Europe's ambition in the fight against climate change remains unflinching," Jorgensen said in an Oct. 14 statement. "But as we approach a difficult winter in terms of energy prices, we need to be flexible and pragmatic in the implementation of our rules. The priority now is to shield European citizens from the price volatility we are facing, and avoid any potential additional risk to energy supplies at a time of global constraints."

Platts, part of S&P Global Energy, assessed the DES Northwest Europe LNG marker at $27.98/million British thermal units on Oct. 13. The benchmark is at its highest since December 2022.

Proposal components

Under the official text of the EC proposal, importers of oil, natural gas and coal into the EU would have to show that imports under new contracts meet the same methane monitoring, reporting and verification requirements as EU producers from 2028, rather than 2027, as mandated under the current law.

Reporting for 2028 imports under the proposal would be required by May 31, 2029, and would continue annually thereafter.

The EC proposal also calls for a delay to methane intensity reporting requirements for both EU producers and importers. Under the proposal, this reporting would only be required to start from Aug. 5, 2029, for production from the previous year. The current law mandates reporting from Aug. 5, 2028.

Both sets of revised requirements would continue to apply only to contracts concluded or renewed on or after Aug. 4, 2024, as in the current law.

The EC also proposed delaying reporting requirements for a later stage of the methane law, when importers and EU producers will have to comply with methane intensity limits that have yet to be set. The EC, however, did not propose narrowing the scope of those requirements.

Under the proposal, importers and EU producers of oil, gas and coal would have to demonstrate their volumes' methane intensities come in below the intensity limit from Aug. 5, 2031, for the previous calendar year. The current law calls for reporting to start by Aug. 5, 2030.

However, even though the reporting deadline would be later, the EC proposal still calls for the intensity limit to apply to supply contracts concluded or renewed after Aug. 5, 2030. So, even though the reporting would be delayed, it would still cover the same activities as the current law.

The proposal will now head to the European Parliament and Council.

"Considering the deadline [for methane law obligations] is approaching, it is likely there will be a request to use the urgency procedure [to consider the EC proposal], but I cannot tell yet if and when that would be," an EU Parliament spokesperson told Platts Oct. 14.

An EU Council spokesperson did not immediately reply to a request for comment from Platts on when the Council expects to consider the proposal.