US Demands EU Gas Exemption from Methane Law
Source: Global Finance News
Reporter: MD Rubel Islam
Published: Dec -15 , 2025 — 5:2 PM (GMT+6)
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| US pushes EU to delay methane emissions rules on American gas exports amid rising trade tensions. |
Detailed News”
- US Demands EU Exempt Gas Under Methane Emissions Law
- US Demands EU Gas Exemption From Methane Emissions Regulation
- US–EU Trade Tensions Rise Over Methane Emissions Law on Gas Imports
US Demands EU Exempt Its Gas From Methane Emissions Law
US–EU Trade Relations Face New Strain Over Climate Policy and Gas Exports
Introduction: Why the US–EU Methane Dispute Matters
The United States has formally demanded that the European Union exempt U.S. gas exports from its strict methane emissions law, a move that could reshape U.S.–EU trade relations, disrupt LNG imports to Europe, and test the balance between climate ambition and energy security. According to a document reviewed by Reuters, Washington is urging Brussels to delay enforcement of the EU Methane Regulation (EUMR) on American oil and gas exports until at least 2035.
This request comes at a sensitive moment for Europe, which is still restructuring its energy system after deciding to phase out Russian gas. With U.S. LNG now playing a central role in gas supply to Europe, the dispute raises critical questions about climate policy in Europe, trade fairness, and whether environmental rules are turning into a non-tariff trade barrier in global energy markets.
What Is the EU Methane Emissions Law?
The EU methane emissions law, officially called the EU Methane Regulation (EUMR), is one of the world’s most ambitious climate policies targeting methane emissions from the energy sector. Methane is a planet-warming gas that is far more potent than carbon dioxide over a short time horizon, making it a priority for rapid climate action.
Under the regulation, companies that export oil and gas to the EU must monitor, report, and verify methane emissions across their supply chains. The law applies not only to EU producers but also to fossil fuel imports into the EU, making it a global standard-setter in climate regulation.
Key Features of the Methane Emissions Regulation
The regulation introduces mandatory methane reporting requirements, continuous monitoring of emissions from production to transport, and progressively stricter compliance thresholds. It also gives EU authorities the power to restrict imports that fail to meet transparency standards, reinforcing Europe’s leadership in climate governance.
Why the US Demands an Exemption
The US demands EU exemption for its gas exports because American officials argue that the methane rules are unrealistic under current industry conditions. The U.S. government claims that collecting precise methane data across complex global supply chains is costly, technically difficult, and could disadvantage U.S. exporters.
In a document circulated to EU member states, Washington proposed that, if a full repeal is not possible, the EU should delay requiring U.S. emissions data reporting under the EUMR until October 2035. The document describes the regulation as a non-tariff trade barrier that threatens the broader transatlantic trade relationship.
US Government’s Main Concerns
U.S. officials warn that compliance costs could reduce gas supply to Europe, undermine the competitiveness of U.S. oil and gas exports, and disrupt LNG imports to Europe at a time when Europe needs stable energy flows.
Impact on U.S. Oil and Gas Exports
The European Union is one of the most important markets for U.S. oil and gas exports, especially liquefied natural gas. Since Europe began to rapidly phase out Russian gas, American LNG shipments have surged, helping stabilize energy markets during periods of high volatility.
Any regulatory uncertainty caused by the methane emissions regulation could discourage long-term contracts, delay investment, and reduce export volumes. For U.S. producers, Europe is not just a market but a strategic partner in global energy trade.
Why Europe Needs US Gas
Europe relies on U.S. LNG for energy security, supply diversification, and price stability. Long-term contracts with American suppliers help ensure consistent gas supply to Europe, particularly during winter demand peaks.
LNG Imports to Europe and Energy Security
Since Russia’s invasion of Ukraine, LNG imports to Europe have become a cornerstone of the continent’s energy strategy. The United States has emerged as Europe’s largest LNG supplier, filling the gap left by declining pipeline gas from Russia.
However, stricter methane emissions regulation could raise compliance costs for exporters, reduce available LNG cargoes, and push Europe to seek alternative suppliers. This creates a structural tension between Europe’s climate goals and its immediate energy security needs.
Methane: A Planet-Warming Gas Under Global Scrutiny
Methane is responsible for nearly 30% of global temperature rise since the Industrial Revolution, making it a critical target for climate mitigation. As a planet-warming gas, methane traps heat far more effectively than CO₂ in the short term.
The oil and gas industry is one of the largest sources of methane emissions, which is why the EU has placed strong emphasis on methane reporting requirements. Reducing methane offers one of the fastest ways to slow near-term global warming.
Why Methane Matters
Methane is over 80 times more powerful than carbon dioxide over a 20-year period. Rapid reductions can deliver immediate climate benefits while longer-term decarbonization strategies take effect.
Climate Policy Europe vs Trade Interests
The dispute highlights a growing clash between climate policy in Europe and global trade dynamics. While the EU argues that environmental protection must apply equally to domestic and imported fuels, the U.S. sees the regulation as disproportionately affecting foreign exporters.
EU’s Position
The EU maintains that the methane law is essential for meeting climate targets and protecting public interest. So far, the European Commission has not confirmed whether it will grant any exemptions.
US Position
Washington argues that the rules unfairly target U.S. exporters, strain U.S.–EU trade relations, and undermine transatlantic energy cooperation at a critical time.
Role of the U.S. Energy Secretary
The U.S. Energy Secretary has been vocal in opposing the EU Methane Regulation, warning that it could disrupt gas supply to Europe, increase energy prices, and weaken strategic cooperation between allies.
These concerns were echoed in the U.S. government document reviewed by Reuters, reinforcing Washington’s push for regulatory relief.
European Commission and Member States’ Response
The issue was discussed ahead of an energy ministers meeting in Brussels, where EU governments weighed the trade risks against climate leadership. Some member states are concerned about supply security, while others fear that concessions could weaken climate credibility.
What EU Energy Ministers Are Debating
Discussions focus on possible flexibility in implementation, the impact on trade, and maintaining unity among EU member states as the law moves toward full enforcement.
Is the Methane Law a Non-Tariff Trade Barrier?
The U.S. explicitly labels the regulation a non-tariff trade barrier, arguing that it restricts trade without imposing tariffs. Critics say compliance favors EU producers and increases costs for foreign exporters, while supporters argue that environmental costs must be internalized.
What This Means for Global Energy Markets
If the EU grants an exemption, it could weaken global methane reduction efforts. If it refuses, trade tensions may escalate, potentially reshaping LNG flows and global energy investment.
Possible Outcomes
Outcomes include partial delays, negotiated compliance frameworks, legal disputes, or long-term shifts in global LNG trade patterns.
Reuters Power Up Newsletter Insight
According to the Reuters Power Up newsletter, the dispute reflects deeper tensions between climate ambition and energy reality, especially as global demand for gas remains strong during the clean energy transition.
Conclusion: Climate Goals vs Energy Reality
The U.S. demand to exempt its gas from the EU methane emissions law highlights the growing friction between environmental regulation and global energy trade. As Europe balances climate policy with energy security and the U.S. seeks to protect its oil and gas exports, the outcome will shape the future of U.S.–EU trade relations and methane reduction efforts worldwide.
For now, global markets are watching closely as Brussels and Washington negotiate a path between cutting emissions and keeping energy supplies stable.
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