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FEATURE ARTICLE: Biased EU energy regulations could further undermine regional competitiveness and create uncertainty in the global gas market

20 October 2025 |

EU energy consumption has declined significantly since the mid-2000s, driven by climate policies and further intensified by high energy prices following the 2022 crisis, eroding the region’s competitiveness and slowing economic growth. This trend may worsen under recently adopted regulations. The 2024 Methane Emissions Regulation (MER) imposes strict Measurement, Reporting and Verification (MRV), Leak Detection and Repair (LDAR), and venting and flaring requirements on both domestic and foreign gas suppliers, raising concerns about consistency with WTO rules and with the UNFCCC and Paris Agreement principles of nationally determined action. Together with the Carbon Border Adjustment Mechanism (CBAM) and the Corporate Sustainability Due Diligence Directive (CSDDD), it increases compliance costs, raises energy prices, and further undermines EU competitiveness. These measures could also reshape global gas trade by excluding non-compliant suppliers from the EU market, forcing them to redirect exports and altering supply routes, price signals, and competition dynamics.

Read the full feature article: Feature article GECF MGMR October 2025.pdf