The European Union asks member countries to waive penalties for three years for oil and gas companies that breach its methane emissions law due to ongoing disruption to energy supplies as a result of the Iran war. The change will apply to existing oil and gas supply contracts, and any signed or renewed before January 2028.

The EU methane law requires that imported gas must comply with emissions monitoring and verification laws equivalent to Europe’s from January 2027. Not applying penalties associated with the law will weaken the EU climate policy, but warnings from the US government and oil and gas companies state that without it, there could be damage to Europe’s ability to secure fuel supplies.

In the draft document, the EU states: ‘In the current Middle East crisis context, in order to not endanger the ​security of energy supply… and to tackle the exposure of European consumers and businesses to ​potential energy supply shortages causing high prices, member states should not apply the penalties.’

‘If the EU is serious about strengthening ​energy security, it should not undermine the very rules designed to reduce dependence on fossil fuels,’ said Flora Witkowski, ​gas policy coordinator at Climate Action Network Europe.