Securing Affordability & Supply for Europe: Ensuring EU Methane Regulation effectiveness

Recent escalation of tensions with Iran and the resulting volatility in global energy markets are placing pressure on energy flows and prices. It is essential that EU policy choices do not unintentionally create additional supply disruptions for Europe.

Affordable and secure access to energy remains essential for households, businesses, and industry across Europe while domestic production and diversified imports continue to play a central role in ensuring price stability, security of supply, and economic resilience in Member States, with direct implications for citizens and voters.

In that context, the EU Methane Emissions Regulation represents a landmark effort to reduce methane emissions, an objective broadly supported by industry. At the same time, its importer requirements and obligations affecting domestic production are being introduced amid geopolitical uncertainty, structural changes in energy supply, and persistent affordability pressures.

A recent Wood Mackenzie study indicates that, if implemented as currently designed, the Regulation could significantly reshape energy flows into the EU. It estimates that by 2027, 43% of natural gas imports and 87% of crude oil imports could be non-compliant and deterred from Europe. In the context of uncertainty around enforcement and penalties, market participants may be unwilling to take the risk of non-compliance, potentially leading certain supplies to be effectively excluded from the EU market and increasing exposure to price volatility.

If these risks are not addressed, the impact could extend beyond compliance challenges to include higher and more volatile energy prices for households and SMEs, increased pressure on domestic producers and energy-intensive regions, and greater vulnerability across Europe’s energy supply chains.

The discussion will invite policymakers to reflect on:

• How methane reduction objectives can be delivered while maintaining secure and diversified energy supply,
• How implementation choices affect energy affordability and price stability, and
• What targeted adjustments may be necessary to avoid unintended consequences for Europe’s energy system.

Welcome and Introduction:

• Michael GAHLER MEP, President of the Kangaroo Group

Speakers:

• Andrea WECHSLER MEP, EPP/Germany, Member of the Committee on Industry, Research and Energy
• François-Régis MOUTON DE LOSTALOT, Managing Director, IOGP Europe

Venue:

• European Parliament of Strasbourg