Member stated in the European Council announced that they have agreed to postpone methane monitoring and reporting rules for oil, gas and coal importers by one year, supporting an EU Commission proposal aimed at avoiding adding pressure to the EU’s security of energy supply.

The agreement establishes the Council’s negotiating position on the proposal. While member states signaled that they will seek an early agreement with the European Parliament to ensure that the proposed postponement takes effect by the end of the year, the adopted position represents a significant gap with Parliament’s stance, which seeks to push off the new rules by three years.

The Commission’s proposal aims to push back requirements for fossil fuel importers under a 2024 law focused on enabling the EU to reduce methane emissions from the energy sector, in order to help reach the EU’s climate goals and improve air quality. Rapid reduction in methane emissions is seen as one of the most effective near-term actions that can be taken to help achieve the global climate goal to limit warming to 1.5°C. Methane is an extremely potent greenhouse gas (GHG), with as much as 80x the warming power of CO2, and oil and gas facilities are the among the largest industrial sources of methane emissions.

The 2024 law set rules for measuring, reporting and verifying methane emissions, for finding and repairing leaks, and for limiting venting and flaring. It also represents the world’s first comprehensive legislation to regulate methane emissions related to imports of oil, gas and coal.

The requirements for monitoring, reporting and verification for natural gas, oil and coal importers, are currently set to begin in 2028, but in October the Commission proposed a one-year delay, citing a need to help avoid additional pressures on the security of supply of imported fossil fuels in the current geopolitical context.

When adopting its position, however, Parliament said that it is pushing to delay the requirements until 2031, noting that importers have warned that they may not be able to secure enough compliant supplies, with energy markets already strained.

In a statement released announcing the agreement, the Council called the Commission’s proposal a targeted measure to address the impact of the current geopolitical context on global supply chains, energy security and energy and fuel prices. Council’s position, however, also includes a requirement for the Commission to assess by September 30, 2027 whether the necessary elements for the implementation of the reporting obligations are met, including sufficient number of third-party verifiers to assess the conformity of the emission reports, and whether there are in place EU implementing rules on transferring information about methane emissions between producers and importers, as well as on equivalent third-party verification and monitoring procedures in third countries.

Darragh O’Brien, Ireland’s Minister for Climate, Energy and the Environment, said:

“There are significant pressures on global energy markets, which are driving up energy prices across the EU. More than ever, we need secure and reliable energy supplies in Europe. The Council’s agreement today proposes a pragmatic approach forward, addressing the pressures in the energy market, while maintaining the EU’s global leadership in reducing methane emissions.”