The IEA confirms the concerns of industry on the EUMR implementation

The International Energy Agency's latest assessment confirms that the EU Methane Regulation, as currently implemented, could cause decline in competitiveness and lower runs of EU refineries, resulting in higher import dependency and weakening the EU security of energy supply. These conclusions are consistent with those of the Wood McKenzie study published earlier this year.

The IEA estimates that the pool of tradable crudes available to EU refiners could shrink by more than 50% from January 2027, despite demand for refined products remaining unchanged. Furthermore, traceability and verification requirements could further reduce this pool by as much as 87% overall, according to the Wood Mackenzie Study.

We argue, in addition, that the crude oil non-compliant with the EUMR requirements will not stay in the ground. It will simply be redirected to refineries outside Europe and possibly be used to increase the imports of refined products made from those same barrels. The result undermines the regulation's environmental objective: upstream methane emissions are not reduced, while additional transport and refining activity outside the EU generates even higher emissions.

Our industry remains fully committed to the objective of reducing methane emissions and supports robust and effective implementation of the Regulation. However, the findings highlighted by the IEA demonstrate the need for additional time to develop the necessary compliance, traceability and verification framework. Liana Gouta, Director General of FuelsEurope, commented that "If legal uncertainty or unworkable requirements restrict access to crude imports, Europe risks increasing its dependence on imported products from third countries. This would be a clear lose-lose outcome. Rather than reducing global emissions, it would merely export refining activity and associated emissions beyond Europe's borders, while weakening the EU's industrial base, strategic autonomy and energy security."

We urgently request:

• The postponement of the relevant importer obligations through a targeted legislative amendment until
• The Commission ensures legislative clarity regarding key compliance elements and puts in place fully operational tools at a global scale, i.e. accreditation, verification and certification, which we expect will take at least another three years.