Credit: Zulkiffle Mohd Kassim/Big Stock Photo
21 February 2024
Biden's climate law targets methane emissions with financial penalties
The Inflation Reduction Act introduces a significant methane fee to curb emissions from the oil and gas industry.
Naveena Sadasivam reports for Grist.
In short:
- The IRA mandates a $900 fee per metric ton for methane emissions exceeding a set threshold from 2024.
- This fee could result in substantial financial liabilities for major oil and gas companies.
- The U.S. Environmental Protection Agency (EPA) is updating rules for methane emission reporting, aiming for more accurate and accountable measures.
Key quote:
"They're going to be beefing that process up in light of the methane fee, since now there's a financial incentive to misreport their emissions or omit certain things."
— Edwin LaMair, attorney at the Environmental Defense Fund
Why this matters:
The methane fee is a step toward holding the oil and gas industry accountable for its environmental impact. This approach reflects a growing emphasis on using economic incentives to drive significant reductions in greenhouse gas emissions.
Related: Oil and gas methane emissions in US are at least 15% higher than we thought.
