The European Commission is exploring policy tools to pressure global LNG exporters to reduce their greenhouse gas emissions. The policy is part of the European Union’s environmental clean-up efforts, called the Green Deal. The ultimate goal of the policy is to lower carbon dioxide and methane emissions as the union looks for stricter climate targets. Last month, the European Commission approved a strategy to improve the reporting, measuring, and verifying methane emissions.
While the policy will apply to all LNG suppliers, it would likely become a source of tension with Washington. President Donald Trump has been promoting LNG as freedom gas to his European allies, as an effort to counter Russian dominance in the continent’s energy market. Some eastern European countries have also prodded to purchase US LNG and cut dependence on Russian gas.
Natural gas and LNG were once touted as bridging fuels to smoothen the transition from dirtier fossil fuel such as coal and oil to renewables. However, they have been under greater scrutiny recently as governments seek more ambitious climate goals. In October, France’s Engie SA held off on a contract to purchase LNG from US exporter NextDecade Corp.
