The United States has asked the European Union to exempt U.S. oil and gas from EU methane regulations until 2035, raising trade and climate tensions between Washington and Brussels.
EU methane regulations on emissions reduction
Under EU methane regulations on emissions reduction, starting this year importers of crude oil, natural gas, and coal must report methane emissions linked to supplies destined for the Union. Methane is the second-largest contributor to climate pollution after carbon dioxide. Far more potent than CO2, because it traps heat more effectively in the atmosphere, methane is responsible for about 30% of global warming.
U.S. objections to EU methane regulations
The rules have drawn sharp criticism from the Trump administration. U.S. Energy Secretary Chris Wright has described them as impossible to comply with and warned that the United States could halt energy supplies to Europe. As European countries have worked to reduce their dependence on Russian oil and gas, they have increased imports of U.S. liquefied natural gas, partly in response to sustained pressure from Washington.
Delaying emissions reporting until October 2035
According to a U.S. government document, if a full repeal of EU methane regulations is not granted, Washington is asking Brussels to delay mandatory emissions reporting until October 2035. The document, prepared ahead of a meeting of EU energy ministers scheduled for next Monday, describes the EU methane regulation as a non-tariff trade barrier that imposes an excessive burden on U.S. exporters and on transatlantic trade relations.
The United States is also urging the EU to recognize U.S. methane laws as equivalent to European ones, even though federal methane regulations in the U.S. remain limited. Such an approach would automatically bring U.S. producers and exporters into compliance. In addition, the Trump administration has asked Brussels to commit to refraining from penalties in cases of non-compliance. Both U.S. and European oil and gas industry groups support revising the regulation and want stricter obligations, due to take effect from 2027, to be postponed. Dan Byers of the U.S. Chamber of Commerce said EU methane rules are particularly difficult to apply because of the large number of producers and the mixing of gas molecules from different sources.
Trump administration delays methane reduction obligations
The request to align EU rules with U.S. standards is widely seen as ambiguous and illogical. The U.S. government has already moved to delay the introduction of federal methane reporting requirements and has suspended some obligations until 2034. The Environmental Protection Agency recently announced it would postpone rules requiring the oil and gas industry to curb methane emissions. Under regulations adopted during the Biden administration, oil and gas companies were expected to begin cutting methane releases this year. Instead, the Trump administration has allowed them to wait until January 2027 and is considering repealing the measure altogether.
EU commission rejects U.S. request
The European Commission has made clear that it is not considering withdrawing methane legislation or granting exemptions. EU energy commissioner Dan Jorgensen said the Commission is focused on supporting implementation where possible, but confirmed that the law will remain in force.
Simpler compliance pathways under EU methane regulations
Just last week, according to a document shared with EU member state governments, the Commission proposed two possible pathways to help companies comply with EU methane regulations, particularly in cases where the origin of gas is difficult to trace. This flexibility could apply to liquefied natural gas shipments from the United States, as each cargo typically contains gas sourced from multiple fields.
One option would allow companies to comply by using certificates issued by an independent third-party verifier, assigning an emissions value to imported gas based on its production location. The second option would introduce a digital ID for fuel volumes, to be attached to all sales and purchase contracts along the supply chain from producer to final buyer. These adjustments would not alter the core requirements of the regulation, which will become progressively stricter. From 2027, European importers will have to demonstrate that they source from producers applying verification and transparency standards equivalent to those set out in EU methane regulations.
