European Union (EU) officials have gotten so aggressive in recent energy-related negotiations with the U.S. This is unacceptable, and they should not have to lower their environmental and food safety standards. Former President Donald Trump famously walked away from a proposed ‘zero-to-zero’ tariff deal with Brussels. He cited a huge $350 billion trade deficit with the EU as his excuse.
To punish Russia, the EU has announced it will stop all imports of Russian energy by 2027. Unfortunately, despite the Kremlin’s purported “pivot to Asia,” they remain responsible for 17.5% of the EU’s Liquefied Natural Gas (LNG) market. As the bloc looks to diversify its energy sources, the EU is considering increasing its LNG imports from the United States. But any possible rise would be contingent on adherence to stronger European environmental standards.
The Methane Regulation is a critical piece of ongoing legislation that’s worth following. It will first require LNG exporters to the EU to monitor, report, and verify their emissions. A high-ranking EU source recently confirmed to EEB and WWF that the European Commission will not bring forward the Methane Regulation plan before summer. This only leaves the bloc with just over two years to actually implement it.
The Commission’s room for manoeuvre is very, very limited,” said one EU official. We’re looking for ways to aggregate demand for LNG and looking at permitting processes for LNG infrastructure. Though expensively rich in LNG terminals, the EU is still jittery about who it gets its energy from.
Demand for fossil fuels in the EU is crashing. The move comes as the entire bloc continues to double down on its decarbonization agenda. In Europe, the EU is urgently stepping up efforts to build out renewable energy infrastructure, especially in wind and solar industries.
Trump’s comments during negotiations highlighted his administration’s push for increased energy exports to Europe. Specifically, he called on the US to immediately work to reduce its trade deficit with the EU by exporting more energy.
“One of the ways that can disappear easily and quickly is they’re gonna have to buy our energy from us, because they need it…We can knock off $350bn in one week,” – Donald Trump
The former president’s speech is indicative of a strategy. He seems set to use our energy exports to help address these trade imbalances. EU officials are concerned about being over-dependent on any one supplier.
“We want to avoid over-dependence on any single supplier,” – a Commission spokesperson
As noted by Energy Commissioner Jørgensen, this provides an opportunity to significantly increase LNG purchases from the US. He insured that an increase would be consistent with EU environmental protections.
“There was potential for the EU to buy more LNG from the US, but it would need to be on conditions that are also in line with European environmental regulations,” – Energy Commissioner Jørgensen
The delicate negotiations on the part of the EU and the US highlight the difficulties faced by energy trade on a global scale as politics rapidly shift. Both sides are boldly and skillfully charting their courses through these last negotiations. The EU holds the line, protecting its high environmental standards while continuing to push for reliable energy supply.
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