Meer documentenQuestions and answers on a set of recommendations to implement the EU Methane Regulation
What is the Commission recommending to Member States to implement the EU Methane Regulation?
The European Commission has adopted two recommendations (one on compliance solutions and one on penalties) to help Member States and industry implement effectively the EU Methane Regulation, a key tool in the fight against climate change.
The first recommendation provides guidance on solutions that importers can use to demonstrate evidence of compliance to national authorities. The EU Methane Regulation is open to different compliance solutions, and several solutions can co-exist at the same time. Two solutions in particular: ‘certification' and ‘trace-and-claim'. These solutions are already being used in countries with complex supply chains, such as the US.
In the second recommendation, the Commission provides clarity on penalties. The Commission recommends to the Member States to suspend the application of penalties for non-compliance for three years (2027, 2028 and 2029). This will give importers the necessary time to progress meaningfully on compliance with the EU Methane Regulation while ensuring security of supply in a context of global energy markets tightness caused by the ongoing blockade of the Strait of Hormuz and the conflict in the Middle East. Despite the temporary suspension of penalties, meant to support companies in their compliance, all obligations stemming from the Regulation will continue to apply.
The application of these recommendations will ensure a homogenous application of the Regulation across the Union and foster a coordinated approach to security of supply.
Why is the Commission issuing these recommendations?
The Commission firmly stands by the EU Methane Regulation and its ambition. It is a key tool to address harmful emissions from the energy sector. Methane is the second greatest contributor to climate change.
This is why it addresses concerns around its implementation in a pragmatic way. This will provide immediate legal clarity to industry while preserving security of supply for the Union.
The recommendations address the request of Member States for a coordinated approach at EU level to ensure the implementation of the Regulation. They also respond to calls by stakeholders for stronger legal certainty in the application of certain requirements of the EU Methane Regulation, notably on compliance evidence and fines for non-compliance.
These recommendations are issued in a very specific context. Geopolitical developments in the Middle East are re-shaping the global energy system and disrupting around 20% of global liquefied natural gas (LNG) trade flows, as well as around 20% of total global oil consumption.
The Strait of Hormuz remains largely closed, gradually deteriorating global supply of oil, oil products and LNG, with the duration of the crisis uncertain. This situation restricts different options for sourcing crude oil and gas.
Furthermore, implementation of the Methane Regulation is lagging. Most Member States have not yet adopted their penalty regimes. Industry cannot factor in the risk of contracting non-compliant supplies. This creates uncertainty, at a moment when global energy markets are particularly tight. In this context, the recommendation on penalties aims to ensure that contracting LNG and oil supplies to the EU continues remains unhindered, preserving security of supply.
Recommendations are a suitable tool to provide legal certainty as they have legal effects and cannot be directly challenged through actions for annulment as set out in Article 263 of the Treaty on the Functioning of the European Union. National courts are legally bound to take recommendations into consideration when deciding on disputes submitted to them.
How will the Commission ensure the EU Methane Regulation is properly implemented, while preserving security of supply?
The Commission remains fully committed to the implementation of the EU Methane Regulation. The recommendations adopted today precisely aim at facilitating this process, while preserving Europe's energy supplies at a time of particular market tightness globally.
The recommendation on penalties does not suspend the obligation to comply with the requirements of the EU Methane Regulation. It only suspends temporarily the consequences (application of penalties) of non-compliance. This means that all the compliance obligations for importers will remain in force throughout the grace period.
Companies are expected to continue to progress on compliance with their utmost effort. Member States are also expected to advance in the implementation of the rules.
How will the Commission support the Member States in implementing these recommendations?
The Commission prepared these recommendations in close cooperation with national authorities. It will assist them in implementing them through future exchanges and engagement, including via the Network of Competent Authorities of the EU Methane Regulation as well as bilaterally. The Commission will continue monitoring the situation and stands ready to take further action to ensure the implementation of the Regulation while preserving security of supply in the Union, if necessary.
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