REM: Biden imposes methane fee on oil and gas emitters, and Trump may repeal it

The administration of lame duck US President Joe Biden has finalised a final rule authorising a methane levy for the first time for major oil and gas producers so that emissions of the powerful GHG are slashed.

But the incoming presidency of the pro-fossil fuel and climate sceptic Donald Trump is likely to scrap it when he takes office on January 20.

The fee will start at $900 per tonne of emissions of methane in 2024, $1,200 in 2025 and $1,500 for 2026 onwards. The levies would only apply to facilities that emit more than 25,000 tonnes per year of CO2 equivalent, according to the announcement of the Environmental Protection Agency (EPA).

“The final Waste Emissions Charge is the latest in a series of actions under President Biden’s methane strategy to improve efficiency in the oil and gas sector, support American jobs, protect clean air and reinforce US leadership on the global stage,” said EPA administrator Michael Regan.

“EPA has been engaging with industry, states and communities to reduce methane emissions so that natural gas ultimately makes it to consumers as usable fuel – instead of as a harmful greenhouse gas [GHG]. Along with EPA’s complementary set of technology standards and historic financial and technical resources under the Inflation Reduction Act, today’s action ensures that America continues to lead in deploying technologies and innovations that lower our emissions,” he said.

The final fees were announced at COP29 in Baku, Azerbaijan.

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