The EU proposed to delay new rules to cut planet-warming emissions from methane Tuesday, warning of a tough winter ahead with “very high” oil and gas prices owing to the US-Iran war.
EU energy chief Dan Jorgensen suggested the rules be pushed back by one year to “relax” pressure on energy markets, after holding talks with ministers from the bloc’s 27 nations in Dublin.
“There’s no doubt that we are approaching a winter that’s going to be challenging,” Jorgensen told reporters after the talks.
Energy prices have soared due to the war in the Middle East. Gas prices more than doubled in Europe, just as the bloc needs to replenish its reserves with winter beckoning.
Jorgensen said Brussels did not foresee security of supply issues, but warned: “We do foresee very high prices”.
As a palliative, he backed calls from France and others to postpone rules requiring importers of oil and gas to monitor and report on methane emissions as a way to reduce leaks of the powerful greenhouse gas.
The regulation set to come into effect in 2027 had long been opposed by many fossil-fuel-producing nations, including the United States.
Critics argued that unable to comply in time, some exporters would have stayed away from Europe, narrowing the bloc’s supplier base at a critical time.
Jorgensen denied the EU was walking back its fight against climate change, saying: “We stick to the objectives, we stick to our ambitions”.
But he said the delay would hopefully calm the markets, providing some breathing room for member states.
– Record diesel prices –
The informal talks in Dublin sought to coordinate action among EU nations.
Brussels wants to avoid countries rushing to fill up their reserves all together as families prepare to turn on their heaters — at the risk of driving prices up further.
Storage levels average at around 70 percent across the EU, albeit with significant differences between countries.
In France for example tanks are 82 percent full, while the rate is only 57 percent in Germany.
Meanwhile EU consumers are already contending with high fuel prices, with diesel prices at pumps across the bloc hitting record highs this month.
In a letter to capitals ahead of the meeting, Jorgensen recommended countries take measures to reduce demand for electricity and gas to help contain prices.
The European Commission has already recommended targeted support for the hardest-hit sectors and relaxed its state aid rules.
But a possible diesel export ban in the United States — an idea backed by President Donald Trump — could worsen the situation.
“Europe is going to enter a very difficult winter,” said Fatih Birol, the head of the International Energy Agency (IEA) after attending the Dublin talks.
“I hope that Europe and Europe’s allies work together in order to minimise the risk that we are facing”.
By Agencies
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