The Biden administration announced last week the finalization of new taxes on methane emitted by oil and gas companies on American soil. These fines would initially amount to $900 per metric ton for any discharge exceeding the authorized limit. But Donald Trump, the new American president, could remove them as soon as he takes office on January 20.
The day after the opening of COP29 in Baku (Azerbaijan), the departing Biden administration announced the finalization of a new regulation imposing fines on oil and gas companies that emit excessive quantities of methane, a powerful greenhouse gas. The US Environmental Protection Agency (EPA) will ensure the application of these taxes based on the polluter pays principle.
This methane is more powerful than CO2
Methane is the main constituent of natural gas. Dozens of times more powerful than carbon dioxide, this chemical compound is responsible for a third of current global warming. In addition to posing a threat to the climate, it causes the death of a million people worldwide each year. Its victims succumb to respiratory diseases and cancers caused by air pollution.
The United States wants to reduce its emissions by around 40% by 2030
The United States, the second largest emitter of greenhouse gases in the world, has promised to reduce its methane emissions as part of its climate commitments. This promise motivated Joe Biden's adoption of the Inflation Reduction Act (IRA). This is a major law expected to reduce US emissions by around 40% by 2030, if it goes as planned. It notably includes a fine on methane.
A fine of $1,500 per metric ton in two years
The EPA says the new tax only applies to high-emitting oil and gas facilities. That is to say whose methane emissions exceed specific performance levels. Thus, companies whose emissions are below the authorized limits will not pay fees. On the other hand, those which exceed these thresholds will have to pay 900 dollars per metric ton for any rejection. This fine could increase to $1,500 in two years.
Towards a reduction in methane emissions of 1.2 million tonnes by 2035
The EPA estimates that the new taxes will reduce methane emissions by 1.2 million tons by 2035. That's the equivalent of taking nearly 8 million gasoline-powered cars off the road for a year. The money raised from these fines will be given as credits to companies that build new solar and wind farms, and to people who buy electric cars. But Republican-led states as well as industry groups are already challenging these regulations in court.
Gas and oil lobbies opposed to methane tax
The American Exploration and Production Council, a powerful oil and gas lobby, is calling for repealing the methane tax. One of its executives, Mike Sommers, said “this is the wrong approach to regulation.” He says he looks forward to working with the new administration and Congress to repeal the fine as quickly as possible. Its lobby should win its case since it financed the campaign of Donald Trump, the new tenant of the White House from January 20, to the tune of $14 million.
Global warming, a scam for Donald Trump
Openly climate skeptic, the future American president should not hesitate to undo the standards prepared or put in place by Joe Biden. During his first term, he overturned more than 100 environmental laws. This number is expected to increase as the Republican leader wants to “drill, drill and drill.” Moreover, Donald Trump has repeatedly repeated that global warming is a scam that threatens the competitiveness of the American economy. We are therefore heading towards a boom in fossil fuels, to the great dismay of environmental NGOs.
