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.