Republican Sens. Ted Cruz of Texas and John Kennedy of Louisiana sent a letter Wednesday urging the Trump administration to block a stringent European climate regulation they warn threatens the American oil and gas export industry.
The letter, exclusively shared with the Daily Caller News Foundation (DCNF), urges relevant cabinet members to block the European Union (EU) from imposing “new and arbitrary” methane targets on American energy companies that export to the EU. Amid ongoing trade adjustments, Cruz and Kennedy warn that the European Union Methane Regulation (EUMR) is a devastating non-tariff trade barrier which could “effectively end U.S. LNG [liquefied natural gas] exports to Europe.”
The senators addressed the letter to Energy Secretary Chris Wright, Interior Secretary Doug Burgum, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer.
“As you meet with your European counterparts to finalize the trade deal implementation action plan, we ask that this administration use all available legal, diplomatic, and economic tools to ensure that the EUMR is repealed in full,” the lawmakers wrote in the letter. “Regulating aspects of the EU’s own oil and gas production is within the authority delegated to it by member states — any attempt to extend such regulations to U.S. producers represents a clear and provocative attempt to supersede America’s sovereign right to regulate, through laws passed by the U.S. Congress, its own energy supply.”
Cruz Eu Methane Regulation Letter by audreystreb
The EUMR entered into force in August 2024 and is being phased in over several years. Methane monitoring and reporting requirements will tighten over time for energy companies operating in the EU. The regulation also applies to imports, meaning importers must eventually demonstrate that energy resources entering the EU comply with rules and regulations established by the European Commission.
As a result of the EUMR, U.S. companies exporting LNG to Europe may need to adopt additional methane-management practices to remain competitive in the EU market, a development Cruz and Kennedy argue could have detrimental consequences and advance the “European Green New Deal.”
“When fully phased in, the EUMR will set a new, yet-to-be-defined methane intensity standard for U.S. imports of oil and natural gas. This provision, if allowed to go into effect, would mean that regulators in Paris, Berlin, and Brussels would tell operators in Midland and Pittsburgh how, when, and where to produce energy,” the letter reads. “Already, the current reporting requirements — which are ostensibly the easiest to comply with — not only impugn America’s sovereignty but are nonsensical and create unnecessary burdens on American businesses.”
Though the Trump administration struck a major trade deal with the EU in July to benefit the American energy industry, the EU still imposes harsh climate regulations on U.S. energy companies that drive up costs for Americans, some energy policy experts and insiders previously explained to the DCNF.
Cruz and Kennedy went on to argue in the letter that the EUMR betrays the July trade deal, as the EU agreed to address “burdensome” non-tariff barriers to American exporters.
“The insinuation that European countries could directly regulate American producers is a gross overstep and breach of bilateral relations — especially in the aftermath of Russia’s invasion of Ukraine, where American LNG exporters helped fend off the worst-case scenarios by surging cargoes to the region,” Cruz and Kennedy wrote. “The delayed phase-in is a common tactic of European bureaucrats hoping to change corporate practices via regulatory fiat.”
The lawmakers also argue in the letter that European regulators may not consider the nuances of America’s vast natural gas resources, which produce “different emissions profile[s]” depending on origin, and that “EU demanded [sic] emissions data is infeasible.” Nonetheless, “failure to comply may result in significant financial penalties for American companies,” Cruz and Kennedy warned.
Strategic energy analyst Tammy Nemeth told the DCNF previously EU climate regulations like the EUMR increase costs on U.S. businesses — and thereby Americans — as companies hoping to compete in the European market have to navigate layers of red tape and adopt a net-zero transition plan. Though it is difficult to calculate a precise estimate, complying with EU climate regulations and directives add significant costs for American energy companies that will likely be passed on to consumers in the U.S. and abroad, according to Nemeth.
Nemeth also said that if U.S. oil and gas companies decide to defy the EU’s climate regulations, they risk hefty fines or being effectively barred from trading with the region, Nemeth said.
Some U.S. officials do staunchly oppose the EUMR and are working behind the scenes to convince the EU to exempt American oil and gas companies from penalties, according to multiple reports. Notably, during the previous week the EU offered simpler EUMR compliance rules for importers in response to American pressure, according to Reuters.
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