The European Union wants to suspend penalties for companies that breach new rules aimed at curbing global warming, after the Trump administration and industry groups said they were too hard to comply with and could lead to energy shortages. The European Commission, the EU’s executive arm, recommended in July 2026 that EU countries delay noncompliance penalties that had been set to take effect in 2027. The fines, which can be as high as 20% of a company’s annual revenue, wouldn’t come into play until 2030, the commission said.

The EU requires companies to monitor and report on methane emissions for oil, natural gas and coal they import, and is set to eventually cap the amount of methane that can be emitted for each unit of imported energy. The bloc wants to reduce emissions of methane because it is a potent greenhouse gas that traps heat in the atmosphere.

Disruptions to oil and gas shipments through the Strait of Hormuz have added to concerns in import-reliant Europe, where high prices are kneecapping companies’ ability to compete with the U.S. and China. The U.S. and other energy-exporting countries have pressed the EU to ease its methane rules. Some American multinationals such as Exxon Mobil have subsidiaries in Europe that import energy from outside the bloc, meaning the rules would apply to them, too.

In a joint letter in June 2026, the energy ministers of the U.S., Qatar, Algeria and Nigeria said they saw “no viable path to compliance” with the EU’s methane regulation, and called for a delay to the penalties and changes to the law.

Excerpt from Kim Mackrael, EU to Ease Methane Rules After U.S. Pressure, WSJ, July 20, 2026