What's Happening?
The United States is lobbying the European Union to exempt its liquefied natural gas (LNG) exports from the EU Methane Regulation, which requires monitoring and reporting of methane emissions. The regulation, effective from August 2024, aims to reduce
methane emissions from the energy sector. The U.S. argues that the regulation threatens Europe's energy supply and security. The U.S. has requested a delay in compliance until 2035 if the regulation is not repealed. The U.S. and Qatar are also pushing for changes to the EU's Corporate Sustainability Due Diligence Directive, which imposes penalties for non-compliance.
Why It's Important?
The U.S. request for exemption highlights the tension between environmental regulations and energy security. Methane is a potent greenhouse gas, and its regulation is crucial for climate change mitigation. However, the U.S. argues that strict regulations could disrupt energy supplies, especially as Europe seeks alternatives to Russian gas. The outcome of this lobbying effort could impact international trade relations and the global energy market. It also raises questions about balancing environmental goals with economic and security concerns.
