The EU Commission has issued an internal guideline for member states detailing how they can penalize breaches of the new Methane Regulation. As a report cited by the “Spiegel” indicates, this guideline suggests that penalties against oil and gas corporations may be suspended, extended, or postponed if the companies are deemed to pose a threat to the energy supply.
The guidelines imply that sanctions should only become effective after the energy situation stabilizes. Furthermore, authorities are permitted to assess whether a penalty would negatively impact the supply, even outside of acute crises. Specifically, fines can be extended, penalties can be suspended, or they can be pushed until after the heating period. Notably, the Commission provides no definition of what constitutes a crisis, nor does it set a definite time limit for these exceptional measures.
The Methane Regulation has been in force since August 2024. It requires corporations to measure and reduce emissions of the climate gas methane along their supply chains. This means that, for instance, companies in the United States will also have to curb their methane emissions related to gas extraction if they intend to sell that gas to Europe. In principle, failure to comply would result in fines, seizure of profits, and public warnings.
These proposed flexibilities were demanded by gas lobby groups, such as Eurogas, over months. Furthermore, the German Federal Minister for Economic Affairs, Katherina Reiche (CDU), previously described the Methane Regulation as a potential impediment to gas deliveries in March. The Trump administration also called for the EU to repeal or ease the Regulation because it burden US energy exporters.
According to EU Member of the European Parliament Jutta Paulus (The Greens), the guidance sends “a fatal signal regarding the pressure from the United States”. While the internal guideline is not legally binding, such informal documents often serve as the basis for mandatory policy guidelines.