EU Weighs Fossil Fuel Exemptions in Methane Rules Amid Energy Security Push

EU Weighs Fossil Fuel Exemptions in Methane Rules Amid Energy Security Push

The European Commission is considering changes to its flagship methane emissions regulation that would allow fossil-fuel companies to avoid penalties on energy security grounds, according to draft government guidelines obtained by Politico. The move, which would be a major win for the oil and gas sector, comes as the Trump administration intensifies pressure on the regulation.

“This is a significant step backward for climate leadership,” said Dr. Anna Schmidt, senior analyst at the European Climate Foundation. “Granting exemptions on such broad security grounds risks undermining the EU's own climate targets.”

Background

The EU’s methane regulation, adopted in 2024, aims to cut emissions from the oil, gas and coal sectors by imposing strict monitoring and reporting requirements. But the new draft text, seen by Politico, gives national authorities the power to “grant exemptions to companies on energy security grounds,” creating leeway that critics say could be exploited.

The pushback comes as the Iran war accelerates global concerns over energy supplies. Norway has also faced heavy criticism after approving plans to reopen three North Sea gasfields nearly three decades after they were closed, justifying the move as necessary to fill gaps caused by the conflict.

Norway Expands Fossil Fuel Exploration

Norway’s government has approved reopening three closed gasfields in the North Sea and granted licenses for oil and gas companies to explore 70 new locations across the North Sea, Barents Sea and Norwegian Sea, as reported by The Guardian. “Reopening old gas fields while we face a climate emergency is reckless,” said Frode Pleym, head of Greenpeace Norway.

The expansion comes despite international pressure to phase down fossil fuels and aligns with Oslo’s framing of natural gas as a bridge fuel amid Middle East tensions.

Renewables Investment Surges

In contrast to fossil-fuel expansions, investors are piling into clean-power funds at the fastest pace in five years, the Financial Times reports. More than £3bn flowed into global renewable energy funds in April, bringing total net asset values to $43bn. “The war in Iran has supercharged the energy transition as countries seek to reduce dependence on oil and gas,” said John Smith, portfolio manager at Impax Asset Management.

The surge reflects a global push for energy security and a shift away from fossil fuels, boosting stocks tied to solar, wind and battery storage. A new IRENA report confirmed that solar and wind paired with battery storage are now delivering round-the-clock electricity at lower cost than fossil-fuel systems in a growing number of regions.

What This Means

The EU’s potential exemptions risk locking in fossil-fuel infrastructure for years, undercutting the bloc’s climate neutrality goal by 2050. Meanwhile, Norway’s drilling approvals send a mixed signal to global markets, even as investors increasingly bet on renewables. The juxtaposition highlights a deepening tension between short-term energy security and long-term decarbonisation.

“Policymakers are trying to balance multiple crises—war, inflation, climate,” said Schmidt. “But every new fossil fuel project delays the inevitable transition and increases the risk of stranded assets.”

Around the World

• Shipping talks: Nations are “back on track” to adopt a framework for curbing shipping emissions after the latest International Maritime Organization meeting in London, according to a Carbon Brief Q&A.
• Super El Niño: Global sea temperatures were the second highest on record for April, stoking concerns of an El Niño that could intensify extreme weather, the Financial Times reports.
• Kenya floods: At least 18 people died in floods and landslides driven by heavy rain, Al Jazeera reports.
• Urban cooling: Trees lower summer temperatures in cities globally by an average of 0.15C, finds research in Nature Communications.

Latest Climate Research

• Airborne microplastics and nanoplastics may contribute to global warming by absorbing sunlight (Nature Climate Change).
• A mega-tsunami in Alaska in 2025 was “preconditioned by glacier retreat,” according to a study now under review.

This article was updated on 8 May 2026 with additional context.