Macron’s apt remark on methane

French President Emmanuel Macron has spoken out against the European regulation on methane emissions. In a letter addressed to Ursula von der Leyen, the Élysée Palace has asked for a one-year delay in the implementation of the new rules on reporting emissions from oil and gas imports: their implementation could create legal risks for importers in the midst of a period of acute global scarcity, jeopardising European energy security. This refers to the regulation which, on the one hand, requires producers and importers to track methane emissions resulting from the extraction, import and transport of fossil fuels; and, on the other hand, introduces highly restrictive standards in Europe and extends their application to overseas activities as well.

This issue has been a source of concern for the industry for some time: a study by Wood Mackenzie shows that 43 per cent of the gas and 87 per cent of the crude oil imported by the EU would not comply with the new standards. The French president’s intervention is a last-ditch attempt to bring the Commission to its senses: for now, Brussels has confined itself to a communication introducing elements of flexibility in the application of the new rules and calling on Member States to impose very low or no penalties for an initial period. For many, this is an unsatisfactory solution, as companies would still risk breaching the rules – something that internal regulations often prevent – even if no penalties are imposed. This is why the industry is calling for a postponement of at least three years. Given the imminent deadline – the deadline is 1 January – the ideal solution would probably lie in a combination of measures: a one-year postponement, followed by a three-year suspension of penalties from that point onwards. The two measures are not mutually exclusive, not least because one depends on Europe and the other on national governments. The supply situation has never been so strained and uncertain: this is certainly not the time to impose self-imposed constraints.