EU Urges Pause on Methane Penalties for Energy Firms

The European Commission has recommended that EU member states refrain from penalizing oil and gas companies for breaching methane emissions rules between 2027 and 2029.

The move follows pressure from the US, Qatar, the energy industry and several member states, which have warned that strict enforcement could threaten Europe's gas supplies.

The Commission said the recommendation reflects the strained global energy market following the blockade of the Strait of Hormuz, which disrupted shipments of a significant share of the world's oil and liquefied natural gas.

The underlying legislation remains unchanged, but fines of up to 20% of a company's annual turnover would be temporarily suspended.

The measure weakens one of the EU's most ambitious climate policies aimed at reducing methane emissions. Although the Commission's recommendation is not legally binding, national courts are expected to take it into account when making rulings.

(Reuters, mja)