EU, US industry discuss methane regulation

EU, US industry discuss methane regulation

Brussels, 4 March (Argus) — EU officials today held technical talks with US firms to discuss the former’s 2024 Methane Emissions Regulation (MER), to support "mutual understanding" on implementation, European Commission officials said.

Commission officials added that there are no negotiations with the US on MER, which has caused concern among both US exporters to the EU and the European gas industry. Oil, gas and coal importers will from 1 January 2027 be required to demonstrate equivalent monitoring, reporting and verification (MRV) requirements at production level under the regulation. The commission is then expected to establish by 2030 methane intensity classes for producers’ and companies’ crude, natural gas and coal sold in the EU.

The online discussion with US firms follows a "respectful" request by US energy officials to initiate an equivalence determination process. This would allow US methane measurement and reporting procedures to meet EU requirements. Senior US officials noted last year that the EU’s equivalence determination process would take time and emphasised the need to begin discussions as soon as possible to ensure the continued reliable and stable supply of US gas to Europe.

Commission officials downplayed the meeting today as part of an ongoing engagement on methane emission abatement. But the commission referred to the MER’s requirement for importers of gas, oil and coal to provide national authorities with a report on the quantification of source-level methane emissions by 5 August 2025. EU officials are also cautious about drawing "far-reaching" conclusions in terms of the MER’s potential effect on relations with US partners, they said.

Talks between the EU policymakers and US industry come at a critical moment, according to trade association Eurogas secretary general Andreas Guth. "We hope any talks will be used to resolve concerns around the timeline, uncertainties, and broader impact of the EU’s methane regulation, notably on security of affordable supply, while ensuring methane emissions are reduced," said Guth.

Eurogas noted the MER’s uncertain intensity calculation methodologies and extraterritorial implications. And the organisation said firms are already shying away from liability risks and potential penalties of up to 20pc of the importer’s annual turnover.

By Dafydd ab Iago