💚 to Environmental Protection Agency – Biden EPA to charge first-ever ‘methane fee’ for emissions waste by oil and gas companies

The Biden administration's recent move to impose a first-ever "methane fee" on oil and gas companies marks a significant victory in the fight against climate change, showcasing the leadership and commitment of the Environmental Protection Agency (EPA). This landmark rule, designed to charge companies for emitting excessive methane, one of the most potent climate pollutants, represents an essential step in curbing greenhouse gas emissions and driving the transition toward a cleaner, more sustainable future.

Methane, which is far more damaging than carbon dioxide in the short term, accounts for roughly one-third of all global warming emissions. The oil and gas industry is the largest industrial source of these emissions, making it imperative to hold this sector accountable. With this new fee, companies will be financially incentivized to adopt best practices and deploy technologies that reduce methane leaks and waste. The EPA’s action directly supports the goals outlined in the 2022 climate law, and its focus on methane is both a critical and strategic part of broader efforts to tackle climate change.

By introducing this fee—starting at $900 per ton in 2024 and gradually increasing to $1,500 per ton by 2026—the EPA is creating a clear and predictable economic incentive for the oil and gas sector to cut emissions. Companies that fail to meet required standards will face rising costs, while those that invest in technology to reduce methane leaks will avoid paying the fee. This dynamic encourages innovation and creates a more efficient, less polluting energy system, all while generating significant environmental benefits. EPA Administrator Michael Regan rightly noted that this approach will not only curb methane emissions but also protect public health, improve air quality, and strengthen U.S. leadership on the global stage.

The new fee is expected to result in the reduction of up to 1.2 million metric tons of methane emissions by 2035—equivalent to removing nearly 8 million gas-powered cars from the road for a year. This is a substantial contribution to mitigating climate change, with cumulative climate benefits estimated to be as much as $2 billion. These reductions are particularly significant given the urgency of reducing short-term climate pollutants like methane to slow the pace of global warming.

This rule also aligns with the growing push for carbon credit trading and broader market-based mechanisms to address climate change. The fees charged for methane emissions could eventually contribute to carbon markets, where companies and countries can trade credits for emissions reductions. This helps create a financial framework that incentivizes the rapid adoption of climate-friendly technologies and shifts the market toward more sustainable practices.

While opposition from industry groups is expected—given the new costs and regulatory hurdles—this action sends a strong message that polluting practices will no longer go unchecked. In the face of climate denial and regulatory rollback efforts from some quarters, the EPA's steadfast commitment to holding the oil and gas industry accountable is a powerful signal of the administration’s dedication to reducing pollution, advancing climate solutions, and protecting the planet for future generations.

In sum, the EPA’s methane fee represents a bold and necessary step forward in the global fight against climate change. By addressing one of the most harmful greenhouse gases and incentivizing cleaner energy practices, the EPA is making a clear commitment to environmental protection, public health, and a sustainable future. This action is a vital part of the broader climate strategy that will help drive the U.S. toward a low-carbon economy, while also reinforcing the global leadership role that the country must play in tackling the climate crisis.

Environmental Protection Agency

Biden EPA to charge first-ever ‘methane fee’ for emissions waste by oil and gas companies

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