The European Commission has postponed fines on oil and gas companies that fail to comply with the European Union’s methane emissions regulations until 2030, citing concerns over energy security, supply stability and rising energy costs.
The decision comes as global energy markets remain volatile following heightened tensions involving Iran, which have raised fears of supply disruptions from the Gulf and contributed to uncertainty in oil prices.
The EU’s methane regulation, adopted in 2024, requires emissions monitoring across oil, gas and coal supply chains from 2027. The rules apply to both domestic production and imported fuels, making compliance more complex for companies sourcing energy from outside the bloc.
Although financial penalties have been delayed, fuel importers will still be required to demonstrate compliance with EU methane standards to national authorities. The European Commission said the postponement will allow member states more time to establish enforcement frameworks while ensuring penalties, when introduced, do not threaten energy security.
Environmental organisations criticised the decision, arguing it weakens efforts to curb methane emissions. The International Energy Agency estimates methane accounts for about 30% of global warming since the Industrial Revolution, while the United Nations says up to 75% of methane emissions from oil and gas operations can be eliminated using existing technology.