A Transatlantic Tug of War: Aligning U.S. and EU Methane Regulations

U.S. officials urge the EU to align new methane regulations with existing U.S. standards, ensuring a smooth LNG trade between the two regions. The request comes as the EU prepares stricter import rules for 2030, amid shifts in energy dependency following Russia's actions in Ukraine. The EPA highlights significant emissions reduction potential.

The Biden administration is pressing the European Union to align its upcoming methane regulations with existing U.S. standards. A letter obtained by Reuters reveals the move aims to facilitate liquefied natural gas (LNG) trade, crucial given Europe's shift away from Russian energy sources amid geopolitical tensions.

In a bid to secure equivalence between U.S. and EU methane emission standards, President Biden's team highlighted the robust nature of existing U.S. Environmental Protection Agency (EPA) rules. This alignment is crucial to support the burgeoning U.S.-EU LNG trade, even in the face of shifting political dynamics under President-elect Trump.

The drive to harmonize these standards comes as the EPA rolls out measures targeting methane emissions to achieve significant reductions by 2038. However, EU authorities have yet to finalize their methane limits and the criteria for deeming another country's standards equivalent, leaving the future of the regulations and trade relations hanging in the balance.

(With inputs from agencies.)