EU backs one-year delay to methane rules over Iran war disruption

EU Postpones Methane Emission Reporting Rules Citing War-Induced Energy Disruption

EU Delays Methane Emission Reporting Amid Energy Market Turmoil

By Julia Payne

Background on the Methane Emission Reporting Rules

BRUSSELS, Nov 6 (Reuters) - European Union countries have agreed to delay by a year rules requiring oil, gas and coal importers to report methane emissions, because of energy market disruption linked to the US-Israeli war with Iran, a statement said on Friday.

Alignment with European Commission Proposal

The position adopted by the Council of the European Union, which brings together representatives of EU governments, is in line with the European Commission's proposal made public in October to delay the regulation to January 1, 2028.

Revision Mechanism for Further Delays

EU countries also included a revision mechanism for two additional one-year delays if the Commission cannot show implementation is ready, the position text seen by Reuters showed.

Negotiation Process and Stakeholder Perspectives

Trilogue Negotiations with European Parliament

The Council and the European Parliament —  which voted for a three-year delay — will now enter negotiations known as trilogues to reach a final legal compromise.

Statements from EU Officials

Energy Market Pressures

"There are significant pressures on global energy markets, which are driving up energy prices across the EU," Darragh O'Brien, Ireland's energy minister, said in the statement. Ireland holds the rotating EU presidency.

EU’s Approach to Methane Emissions

"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," he said. 

International Influence and Implementation Challenges

External Pressures and Decision Factors

The United States has lobbied for changes and delays to the EU's methane law but it was pressure from France that prompted the Commission to postpone the rules. The Commission said implementing the rules could make it more difficult for EU countries to secure enough oil and gas given the disruption caused by the Iran war. 

Assessment and Potential for Further Delays

The Commission will need to assess if "elements necessary" for reporting obligations are met by September 30, 2027, otherwise the rules could be delayed by another year and potentially a third year if a second assessment by June 30, 2028, is not positive.

Impact of Methane Emission Reporting Rules

Requirements for Foreign Suppliers

Once implemented, the rules require foreign oil and gas suppliers to the EU to monitor and report emissions of methane, which is the second-largest driver of global warming.

Environmental Significance of Methane

It is far more potent than carbon dioxide, the biggest driver, over the short term and breaks down in the atmosphere much faster, so cutting it can have a rapid impact on limiting warming.

(Reporting by Julia Payne, Editing by Charlotte Van Campenhout and Barbara Lewis)