TheChek News Flow

Energy minister warns of risk to gas supplies if planned rules affecting imports come into force

Germany has called for the EU to suspend implementation of new rules on methane imports, after the US warned that the proposed crackdown on leaks and flares puts Europe’s gas supplies at risk.

Katherina Reiche, Germany’s energy minister, told journalists that Europe needs “at least a postponement or suspension” of plans to expand methane regulation to countries that import to the EU from January 2027. This would allow Germany to “safely supply itself with gas imports” but also kerosene, the base product for jet fuel, she said.

The US, Qatar and other oil and gas importers to Europe stepped up lobbying of the European Commission this week to rewrite the rules, saying that importers were “unwilling to enter into contractual agreements that knowingly violate EU law”.

Reiche’s comments came ahead of a meeting of energy ministers in Luxembourg on Friday, where 12 member states including Italy, the Netherlands and Poland called for a three-year suspension of the legislation. Germany had not signed the declaration but had previously called for the regulation to be implemented with “pragmatism”.

The calls for the suspension come as parts of Europe experience their hottest June on record, in a heatwave that scientists have warned has been exacerbated by climate change.

Methane is the main component of natural gas and more than 80 times more potent than carbon dioxide at trapping carbon dioxide in the atmosphere over a 20-year period.

The EU’s methane regulation was adopted in 2024 to limit methane emissions from imports of energy to the bloc. It already requires EU producers to monitor and repair methane leaks and bans practices such as routine flaring, where gas leaks at oil and gas facilities are burned off instead of being captured. The regulation is due to extend to imported fossil fuels from January 2027.

Analysts are divided over whether the regulation will endanger Europe’s supplies of gas. Rystad Energy, commissioned by climate NGO EDF Europe, has said there are large volumes of oil and gas with high levels of methane reporting, although it says a system needs to be put in place to monitor those imports.

But Wood Mackenzie research backed by industry lobbies has suggested otherwise, projecting that many imports would not be compliant and risk a supply crunch, creating uncertainty among gas traders and companies.

Finnish energy minister Sari Multala, whose country does not support the suspension, told the FT that the concerns could have “more to do with foreign policy than energy policy”, as member states have faced sustained pressure from the US on the issue.

The Commission has said that member states could postpone the application of penalties for importers for three years, but companies have argued that they will not be legally covered if the legislation remains in place and this will hold back the signing of contracts for 2027.

On Friday, EU energy commissioner Dan Jørgensen told ministers the Commission would not amend the legislation as this “would only increase insecurity and uncertainty in the market”. But he said the Commission was working on further guidance to help industries and member states to demonstrate they comply with the rules.

Suspending the legislation could prove a lengthy process subject to legal challenge, given that it is already in force for domestic fossil fuel production.

However, guidance on penalties appears unlikely to satisfy Germany and other member states.

“The purchases for the quantities in 2027 are taking place now,” said Reiche. “We cannot risk our security of supply under any circumstances if the methane regulation remains in its current form.”

Move by Brussels aims to protect domestic producers and prevent valuable metal heading to US and Asia

The EU is set to impose a fee on exports of aluminium scrap to prevent valuable metal heading to the US and Asia, as waste materials emerge as a fresh battleground in a global fight for resources.

The plan to charge a 15 per cent levy would be the first time that Brussels has put charges on goods exiting the bloc. The fees should come into force on September 9, according to two people familiar with the matter.

EU aluminium producers say they are being outbid as overseas smelters making bigger profits can afford to pay more to buy scrap in Europe, melt it into fresh metal and export it back to the bloc.

They say the EU needs to retain the ability to produce the metal used in many green technologies and weapons, as the US and China expand their quest for raw materials by buying mines and striking deals in other countries.

The US imposes 50 per cent tariffs on finished aluminium imports but waives these for scrap metal.

In recent months, the demand for EU scrap has increased as the closure of the Strait of Hormuz has reduced exports from the Gulf.

European Aluminium, which represents producers, said EU aluminium scrap exports hit a record 1.27mn tonnes in 2025, up about 50 per cent since 2019, with most going to India and China.

The price per tonne has jumped by half since October, from €1,500 to €2,240, according to data provider Fastmarkets. 

But the price of aluminium has risen less slowly, from about €2,700 to €3,150, squeezing margins. EU producers also have far higher energy costs than their rivals.

European trade commissioner Maroš Šefčovič promised to take action by June, but there has been fierce opposition to restrictions from scrap dealers. 

FEAD, a global lobby group for the waste industry, warned in January that any restrictions on scrap sales would put the industry at an unfair disadvantage and hamper the circular economy “in the EU and globally”.

“In order to flourish and contribute to the EU’s environmental objectives, competitiveness and economic security, the European waste management industry requires strong and stable domestic demand of recycled materials,” it added. 

But Paul Voss, director-general of European Aluminium, said: “European industry deserves the opportunity to compete in a game that isn’t rigged. This groundbreaking measure is an important demonstration of the Commission’s growing determination to do what it takes to defend Europe’s interests in a world that has fundamentally and irreversibly changed.”

European aluminium producers have invested heavily in recycling plants, partly to cut carbon emissions. But an estimated 15 per cent of EU recycling furnace capacity is unused because they cannot afford to buy enough scrap.

The scrap shortfall is about 2mn tonnes a year, according to European Aluminium. The sector has annual revenue of €40bn, directly employs 250,000 people and supports a further 1mn jobs in Europe. 

The September proposal must be approved by a weighted majority of member states. It would also consider how to implement a proposed ban on exports of rare earth magnets, according to one of the people.

Manufacturing of rare earth magnets, which are used in wind turbines, electric vehicles and other green technology manufacturing, is dominated by China. At times, Beijing has banned or restricted their export, so the EU wants to recycle the ones it has into new magnets to reduce dependency.

The European Commission has not yet responded to a request to comment.

Dove soap maker seeks to boost health and wellness portfolio after spinning off food business

Unilever is exploring a bid for Thorne, the supplements maker valued at up to $4bn, as the consumer goods group hunts for acquisitions to accelerate growth in the wake of a divisive deal to combine its food division with McCormick.

The Dove and Domestos maker is among several bidders circling the long-established US supplement brand, which has been put up for sale by its private equity owner L Catterton, according to people familiar with the matter.

South Carolina-based Thorne sells dietary supplement pills — such as magnesium and omega-3 — primarily in the US. The business, which was founded in 1984, is expected to reach $650mn in revenues this year.

LVMH-backed L Catterton is seeking a sale that values Thorne as high as $4bn, some of the people said. Achieving that would represent a remarkable return on a business it acquired for $680mn through a take-private deal in 2023.

That deal came just two years after Thorne listed on the Nasdaq at $10 per share, marginally below the level at which it was taken private. CNBC reported this year that Thorne had increased annual revenues at a compound rate of more than 30 per cent under L Catterton’s ownership.

The auction was expected to draw interest from other consumer goods groups, the people said, who cautioned that no final decisions had been taken yet. Unilever and L Catterton declined to comment.

Thorne, whose core customers are young adults, sought to bolster its credentials as a science-driven brand by partnering with sports associations and teams.

Chief executive Fernando Fernandez is the latest Unilever boss to try and tilt the FTSE 100 group’s portfolio towards faster-growing beauty and wellbeing brands.

A deal for Thorne would come after acquisitions of brands, including hydration sachet maker Liquid IV, hair growth supplement Nutrafol and three vitamin brands: Olly, SmartyPants and Grüns. Sales in Unilever’s wellbeing division rose at a double-digit rate in 2025.

However, Unilever has been criticised in the past for overpaying for challenger brands such as Dollar Shave Club, which it acquired for $1bn in 2016 before selling it in 2023, after failing to integrate it into the group.

Its acquisition of another subscription-based brand, Graze, also went awry. The business made an operating loss every year under Unilever’s ownership.

Beauty and wellness are among the few product categories that have proved resilient in a generally subdued environment for consumer demand. They also tend to carry higher profit margins than packaged food and homecare brands.

Unilever shares tumbled 7 per cent after it unveiled a deal in March to combine its food business with US spice maker McCormick. Investors have expressed concern over the indebtedness of the combined business, in which it will own a 65 per cent stake.

Gapping down
In reaction to earnings/guidance:

Other news:

Gapping up
In reaction to earnings/guidance:

Other news: