The Commission has put forward two recommendations to guide EU states on compliance solutions and penalties regimes under the EU Regulation to reduce methane emissions in the energy sector.
This includes the suspension of fines by EU Member States for non-compliance ‘to preserve security of supply’. The Recommendation says penalties required by the Regulation must remain proportionate and not endanger security of supply. It recommends Member States to suspend penalties for non-compliance for three years (2027 to 2029) to avoid supply disruptions. At the same time, the Commission stresses that ‘all obligations remain in place and compliance is still required’.
It provides guidance on compliance solutions that importers can use to demonstrate evidence of compliance to national authorities, setting out criteria Member States should use in assessing solutions. It does not require physical tracing of specific molecules, deliveries or cargoes.
In the case of more complex supply chains, the guidance clarifies that importers can use solutions such as ‘trace and claim’ and ‘certification’ to demonstrate compliance. Using such solutions will make demonstrating compliance easier for industry without weakening requirements.
The Commission says the other Recommendation provides guidance on brings certainty and clarity to oil, gas and coal importers, suppliers and Member States on how to demonstrate compliance with the obligations in the Regulation coming into force 1 January 2027 in a simple manner.
The Commission says the easing of requirements under the methane Regulation is because conflict in the Middle East has forced the EU to compete for supplies on global oil and gas markets, which have seen a significant reduction in supply and increased prices. Against the backdrop of such global uncertainty and energy markets tightness, the Commission says it is working with Member States and industry to ensure that the implementation of the EU Regulation to reduce methane emissions in the energy sector would not in any circumstance undermine Europe’s security of supply.
The Commission says the two recommendations are to ‘anticipate possible risks identified by stakeholders and address difficulties in the implementation of the rules’. The recommendations will help establish a clear, predictable and reliable framework for the effective implementation of the EU Methane Regulation, which is a key tool to reduce harmful emissions contributing to global warming as well as reinforcing security of supply by addressing methane leaks.
Methane emissions can be reduced in a pragmatic and cost-effective way to ‘protect both the environment and energy security’.
By providing legal certainty and encouraging a coordinated approach across the Union, the EU executive says the recommendation supports Member States in implementing the Regulation’s import requirements without undermining energy security.
Recommendation on optional model clauses on the reduction of methane emissions in the energy sector
Recommendation on the application of Article 33 of the Methane Regulation EU/2024/1787
Methane emissions – European Commission
Questions and answers on a set of recommendations to implement the EU Methane Regulation
