EU Temporarily Waives Penalties for Methane Emissions Non-Compliance

The European Commission has proposed two recommendations to alleviate tensions in oil and gas markets. The first recommendation provides optional contract clauses for natural gas, oil or coal supply contracts to ensure that information is passed on from producers through traders to European importers.

The regulation was introduced in August 2024 under Regulation (EU) 2024/1787, requiring the measurement, monitoring, reporting and verification of methane emissions in the oil, natural gas and coal sectors. Importers must obtain information on emissions from extraction and transport and demonstrate the comparability of foreign MRV systems.

The second recommendation concerns penalties for non-compliance with selected obligations falling due in the 2027-2029 period. The Commission recommends that Member States temporarily refrain from imposing financial penalties, but this is not a legally binding decision.