EPA Imposes New Methane Emissions Fees

During COP29 in Azerbaijan, the Biden administration announced a new fee on methane emissions from the oil and gas sector, starting at $900 per metric ton in 2024 and increasing to $1,500 by 2026. This initiative aims to incentivize companies to reduce emissions, which are a significant contributor to climate change and are particularly potent as a greenhouse gas. However, concerns arise with the potential incoming presidency of Donald Trump, known for his skepticism towards climate policies, who may seek to repeal this fee. Environmental advocates praised the move, while industry groups have criticized it as overly burdensome. The EPA estimates that the emissions reductions could equate to removing 8 million cars from the road for a year. As COP29 progresses, the focus remains on achieving a collective goal for climate finance and further initiatives to combat greenhouse gas emissions.