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EU to delay methane fines amid US pressure

Financial Times Companies •
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The EU is expected to recommend a three-year delay on penalties for energy importers failing to comply with new methane emissions rules. This comes after intense lobbying from the US, Qatar, and companies like Exxon Mobil and Uniper, who raised concerns about gas supply risks and the potential for penalties up to 20% of annual revenue.

The International Energy Agency also warned that the rules could jeopardize Europe's energy supply due to limited availability of gas meeting EU monitoring standards. The European Commission plans to propose that member states refrain from penalizing infringements for the initial three years, though this recommendation is not legally binding.

A coalition of over a dozen member states, led by the Czech Republic, had also called for a postponement. While the commission has been reluctant to reopen the legislation, some analysts suggest that large volumes of oil and gas already have high methane reporting, though a monitoring system is needed. Methane is a potent greenhouse gas, and its control is crucial for global warming targets.