EU Commission proposes suspending methane regulation penalties for oil and gas firms until 2029

The EU Commission wants to stick to the methane regulation – but intends to waive penalties for gas and oil companies that violate it.

Published: 21 July 2026, 5:50 PM

Photo: photo2000/imago

By Eric Bonse, from Brussels

A new setback for climate protection in the EU: After emissions trading, the EU Commission now also wants to water down the methane regulation. Under pressure from the Trump administration in the United States, the Brussels authority proposes suspending penalty payments for gas and oil companies for three years, until 2029. This move effectively eases trade in the climate killer methane.

Methane heats the climate over 80 times more than CO₂ over a 20-year period. It escapes, for example, during gas extraction through fracking. According to German Environmental Aid, methane emissions are responsible for nearly 40 percent of the climate damage caused by imported fracking gas from the USA. Nevertheless, EU imports of this gas continue to rise.

Trump's administration had exerted massive pressure to loosen EU rules on methane. Now Brussels has caved in – "to avoid supply disruptions," the EU Commission explained.

In doing so, the EU authority is hollowing out the methane regulation adopted in 2024. That regulation provided for strict monitoring of methane emissions in supply chains, with violations to be penalized by fines from 2027. The same obligations were to apply to foreign suppliers as to EU producers.

"Attack on the Green Deal"

That was a thorn in the side of the USA. But Germany and many other EU states also had a problem: they have not yet introduced the sanction regulations. The postponement of penalty payments therefore suits them. The EU Commission has also not done its homework; some legal acts are still missing for implementation.

Against this backdrop, Brussels breathes a sigh of relief: It has saved itself further trouble with the Trump administration and has accommodated domestic industry. The federal government is also relieved; there, Federal Economics Minister Katherina Reiche (CDU) and Environment Minister Carsten Schneider (SPD) had clashed.

Environmental and climate activists, on the other hand, are annoyed. German Environmental Aid speaks of an "attack on the Green Deal." The incentive for investments in climate-friendly processes is weakened. Without sanctions, there is a risk that the climate protection effect of the regulation will fizzle out.

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