EU offers 1-year flexibility on methane rules amid energy crisis

European Commission President Ursula von der Leyen said Tuesday that the European Union will give fossil fuel exporters an additional year of flexibility on methane requirements as the bloc seeks to ease energy costs amid a wider energy crisis.

Addressing the European Parliament in Strasbourg, von der Leyen said the measure would help reduce costs for exporters amid heightened pressure on Europe's energy markets.

"We will give flexibility to exporters for one more year on methane," she said, adding that the measure would "save additional costs at a moment of crisis."

The EU's methane regulation is designed to reduce methane emissions from the energy sector and covers fossil fuels produced within the bloc as well as imported oil, natural gas and coal.

Under the regulation's current implementation timeline, importers were due to begin demonstrating from Jan. 1, 2027 that methane emissions linked to the production of fossil fuels covered by relevant contracts had been monitored, reported and independently verified in line with standards equivalent to those applied under EU rules.

She said gas prices have risen 140% since the end of February, while diesel prices have doubled, adding that imported fossil fuels had cost Europe an additional €100 billion ($112 billion) without providing additional energy.

"Families and industries are paying the cost of a crisis far beyond our borders... Businesses are under high pressure. People struggle to pay their bills. And this could intensify as we head into winter," von der Leyen said.

The EU executive is also planning a strategic dialogue on European refineries and a new task force to aggregate energy demand and facilitate joint procurement, von der Leyen said.

She stressed, however, that the bloc's longer-term response must focus on reducing its dependence on fossil fuels.

"As long as Europe depends on oil and gas, our prosperity remains exposed to events beyond our control. When we import fossil fuels, we import the shocks and crisis that come with them," von der Leyen warned.

Von der Leyen said Europe should therefore replace fossil fuels with clean electricity generated within Europe.