POLITICO Energy Why new EU rules could thwart Trump’s energy ambitions
Jan 31, 2025
Gabriel Gavin, a Brussels-based reporter for POLITICO, examines EU regulations that could create friction in US-EU energy relations during Trump's upcoming term. He discusses how these new rules will impact US liquefied natural gas exports and the challenges for American producers amid tightening environmental standards. Gavin also delves into the complex negotiations surrounding methane regulations and the potential economic implications for both sides, highlighting a shift in energy dynamics influenced by global events.
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EU Methane Rules vs. Trump's Energy Ambitions
- The EU's new methane regulations could clash with Trump's energy export ambitions.
- These rules penalize importers of LNG that don't meet environmental standards, potentially impacting US trade.
CBAM: A Carbon Border Tax
- The EU's Carbon Border Adjustment Mechanism (CBAM) aims to level the playing field on carbon emissions.
- It imposes costs on imported goods from countries with laxer climate rules, potentially impacting US trade further.
Strained Energy Relationship
- The US has been a crucial energy lifeline for Europe since Russia's invasion of Ukraine.
- However, potential trade tensions stemming from the new EU rules could jeopardize this relationship.