The United States has formally requested an exemption from the requirements of Regulation (EU) 2024/1787 on methane emissions in the energy sector. The request seeks to suspend the application of the rules to US liquefied natural gas (LNG) exports until 2035, covering the full implementation timeline of the new obligations for importers.
The European regulation introduces a phased compliance calendar. From May 2025, importers will be required to provide qualitative information on the origin of hydrocarbons and the measurement and reduction methods applied. In January 2027, equivalence in monitoring, reporting and verification (MRV) systems will become mandatory. By August 2028, quantitative reporting of methane intensity will be required, followed in August 2030 by a mandatory threshold for all new import contracts.
A geopolitical position strengthened by EU energy dependency
The European energy context has changed significantly since the war in Ukraine. The European Union has committed to phasing out Russian natural gas imports by the end of 2027, as outlined in the REPowerEU roadmap. In parallel, the United States has become the continent’s leading LNG supplier, accounting for approximately 58% of imported volumes.
The US request is largely based on this strategic position. The Department of Energy considers the EU regulation a non-tariff barrier to trade and seeks to ensure stable market access. This approach comes as European importers are engaged in long-term contracts with US suppliers.
Technical constraints tied to the US export model
Gas exported from US terminals is typically blended from multiple fields and operators. This practice, known as “commingled,” makes it difficult to assign a specific emissions profile to a given cargo. However, EU requirements rely on traceability at the producer or country level to validate MRV equivalence.
To address these constraints, the Commission has opened alternative compliance pathways, including third-party certification and “trace and claim” systems. These mechanisms would allow exporters to demonstrate compliance without requiring physical segregation of molecules along the supply chain.
Contractual impacts and an emerging compliance market
The introduction of a structured regulatory framework could affect the economics of long-term supply contracts. European importers are beginning to include methane compliance clauses, such as audit guarantees, price reopening mechanisms or early termination rights.
At the same time, the market anticipates the emergence of a secondary certification sector. Standards such as OGMP 2.0 (Oil and Gas Methane Partnership) and MiQ labels are increasingly used as contractual references, in the absence of a harmonised global system.
Legal risks for the EU and regulatory uncertainty in the US
Granting a country-specific exemption to the United States could breach the EU’s non-discrimination principle, exposing the bloc to legal challenges or similar demands from other LNG-exporting countries. Several Member States have expressed concerns about weakening the regulatory signal sent to the market and investors.
In the United States, a long-term federal MRV framework has not yet been stabilised. Initiatives such as the Environmental Protection Agency’s Methane Emissions Reduction Program and the Inflation Reduction Act’s incentives remain subject to political changes. This instability complicates the European Commission’s ability to recognise a robust and lasting regulatory equivalence.
