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Market Chatter: EU Defers Methane Emissions Penalties for Importers Until 2029

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The European Union plans to propose a three-year delay in enforcing penalties for energy importers that fail to meet the bloc's methane emissions regulations, Bloomberg reported on Friday, citing documents from the European Commission.

The executive arm of the EU is expected to recommend next week that sanctions be deferred from 2027 until 2030, except in cases involving large-scale fraudulent breaches.

The proposal follows months of pushback from the oil and gas industry, the United States, and more than half of the EU's member states, who have argued that the strict requirements could jeopardize energy supplies.

Though the Commission had previously resisted calls to revise the rules, opting instead for non-binding guidance, the latest move signals a tactical retreat in the face of pressure from major gas-producing nations, including Qatar and the US. The European Commission did not immediately reply to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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