Summary
In this joint letter, companies and trade associations call for targeted amendments to the Methane Emissions Reduction Regulation through the EU simplification agenda, including the stop-the-clock mechanism. Co-signatories – companies and trade associations – stress that the EU Methane Emissions Reduction Regulation (EUMR), in its current form, risks undermining the Union’s energy security of supply and competitiveness.
Key takeaways
- After a joint industry effort to carefully assess possible impacts, there are concers that significant parts of the EU’s natural gas and crude oil imports may not comply with the Regulation’s requirements as of January 2027 – up to 43% of the EU’s natural gas and around 90% of its crude oil imports.
- This limits the EU’s access to globally traded energy at a time when supply is constrained. The Regulation’s uncertain and excessive penalties, up to 20% of annual turnover, is also a deterrence to European importers signing supply contracts. The Regulation’s requirements are overly complicated and impossible to operationalise within set deadlines. Companies and public authorities hence face clear legal compliance risks.
- Efforts of Member States and the European Commission services to address industry concerns through pragmatic implementation are appeciated and supported. However, there remain concerns that they will not provide the necessary legal certainty to ensure imports are not negatively impacted, be it in terms of volumes or price.