Letters to the European Commission Regarding a Discussion on Regulatory Equivalence for Natural Gas
October 28, 2024 -- In response to the European Union’s new regulations requiring extensive documentation of reduced methane emissions for fossil fuels produced in, or imported to, the EU, the U.S. Department of Energy and the U.S. Environmental Protection Agency co-signed a letter addressed to European Commission Director-General for Energy Juul Jorgensen, requesting determination of “equivalency” for U.S. exports of liquefied natural gas to Europe. The U.S. is a leading exporter of LNG to Europe.
The new EU regulations will require measurement, monitoring, reporting and verification of emissions associated with the production of natural gas imports. The goal of the requested discussion with the EU is to determine conditions under which U.S. natural gas, produced and exported pursuant to domestic federal regulations and policies, could be considered “equivalent” to fuel produced under the EU’s new regulations.
The letter, signed by DOE Assistant Secretary for Fossil Energy and Carbon Management, Brad Crabtree and EPA Assistant Administrator for the Office of Air & Radiation Joseph Goffman, requests an initiation of an equivalence determination process. The actual process of establishing such “equivalency” has not yet been established by the EU. However, the process is likely to take more than a year. The letter encourages the European Commission's Directorate-General for Energy to establish transparent consultative procedures that allow for stakeholder feedback. The letter states:
“We are confident that the United States’ extensive domestic regulatory regime to monitor, measure, and reduce greenhouse gas emissions (especially methane) from the oil and gas sector is consistent with the goals of the EU’s regulations.”
A successful conclusion of equivalency negotiations based on current U.S. regulations will ensure that U.S. LNG producers continue to have access to, and remain competitive in, the European market.
October 28, 2024 letter from DOE and EPA to the EU Director-General for Energy (pdf)
December 17, 2024 - As a follow-up to the October 28, 2024, letter, EPA sent a letter to the European Commission Director-General for Energy to provide more details about EPA regulations that support the equivalence determination inquiry.
December 17, 2024, letter to the European Commission Director-General for Energy (pdf)