EU Plans 3-Year Waiver for Methane Emission Violations Amid Iran War Impact

According to a draft document obtained by Reuters, the EU will require member states to suspend penalties for oil and gas companies violating methane emission regulations for three years to address energy supply shocks caused by the Iran war. This move follows pressure from the US government and industry groups, who warned that the regulations could undermine Europe's fuel supply security. However, this relaxation could weaken the EU's climate policy, as methane is a potent greenhouse gas. The draft suggests that member states should not impose penalties in 2027, 2028, and 2029, except for 'large-scale fraudulent violations.' This applies to existing supply contracts. The EU's original regulation required imported gas to meet emission monitoring standards starting January 2027, with fines up to 20% of annual turnover. Environmental groups criticize this as turning the policy into a 'paper tiger.'