The European Commission is telling EU member states to suspend penalties for non-compliance with new methane import rules for three years, from 2027 to 2029, as it works to keep oil and gas flowing into a tight European energy market.
A three-year grace period on fines
Most EU member states have not yet set up penalty regimes for the EU Methane Regulation, the Commission said, which leaves companies unable to judge the risk of sourcing oil and gas that might not comply. Its recommendation clarifies that any penalties member states do impose must stay proportionate and must not put security of supply at risk. It recommends states suspend those penalties for three years, covering 2027 through 2029. All obligations under the regulation remain in place during that window, and companies must still meet them.
Compliance without tracing every cargo
The first recommendation covers the regulation's import requirements, which take effect on January 1, 2027, when emissions monitoring obligations begin. It gives importers, suppliers and member states guidance on how to demonstrate compliance without physically tracing individual molecules, deliveries or cargoes. For more complex supply chains, importers can use "trace and claim" or certification approaches instead. The Commission said the guidance sets out criteria member states should use when assessing which compliance solutions to accept.
The backdrop: a tighter market
The conflict in the Middle East has forced the EU to compete for supplies on global oil and gas markets, which have seen reduced supply and higher prices, the Commission said. It is monitoring European market supplies with member states and says it is ready to take further measures if security of supply comes under risk in the coming months. WTI crude stood at $84.65 and Henry Hub gas was $3.06 per MMBtu as of June 15, according to the EIA.
Background
The EU Methane Regulation, adopted in 2024, is the world's first comprehensive law that also regulates methane emissions tied to imports of oil, gas and coal, on top of domestic production, transportation and processing. Today's recommendations follow discussions with EU energy ministers in December 2025 and June 2026, and build on import guidance the Commission updated in March 2026.
