💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Green groups demand US end talks on natural gas certification

Published 07/19/2023, 01:39 PM
Updated 07/20/2023, 11:06 AM
© Reuters. FILE PHOTO: A drilling rig operates in the Permian Basin oil and natural gas production area in Lea County, New Mexico, U.S., February 10, 2019. Picture taken February 10, 2019.   REUTERS/Nick Oxford/File Photo
NG
-

By Timothy Gardner

WASHINGTON (Reuters) -A group of nearly 150 environmental justice groups urged the Biden administration on Wednesday to abandon talks with global energy companies on standards for "certified" natural gas, a form of the fuel that producers market as climate friendly, but critics say undermines the transition from fossil fuels.

The United States has held talks with energy companies and foreign officials on gas certification as it ships large amounts of liquefied natural gas, or LNG, to Europe to displace Russian gas amid the war in Ukraine.

The Natural Resources Defense Council, Sierra Club, Gas Leaks and other green groups argued the discussions are a diversion from President Joe Biden's pledge to move toward cleaner energy sources.

"While we strongly support robust and well-enforced regulations to cut methane leaks from the oil and gas sector, we oppose efforts that aim to provide 'extra credit' which the gas industry uses to promote growth in the production, trade and consumption of methane gas," they wrote in a letter to U.S. Energy Secretary Jennifer Granholm.

But Tom Hassenboehler, a lobbyist who helped form the Differentiated Gas Coordinating Council industry group, said certified gas backers adopt practices to lower emissions throughout the gas supply chain.

"These practices should be encouraged not discouraged as efforts and momentum grow to drive down methane pollution," Hassenboehler said on Thursday.

METHANE EMISSIONS

A Department of Energy spokesperson said the agency "is not introducing or endorsing any natural gas certification measures or standards." It is working with gas importing and exporting countries to develop an approach to measurement, monitoring, reporting and verification of emissions that "provides consistency and accountability," and aligns with the administration's plan on methane emissions, the spokesperson added.

While gas burns cleaner than other fossil fuels, its main component is the powerful greenhouse gas methane, which can leak into the atmosphere - a top complaint from environmentalists, whose support is key as Biden ramps up his 2024 re-election campaign.

Gas producers have attempted to market certified gas at a premium for years, using third-party certifiers to prove the fuel was produced and transported in ways that minimize emissions.

But a lack of unified standards on measuring and verifying emissions across the supply chain has limited low-carbon gas markets. Certifiers rely on competing measurement technologies and differing methodologies on interpreting the data.

© Reuters. FILE PHOTO: A drilling rig operates in the Permian Basin oil and natural gas production area in Lea County, New Mexico, U.S., February 10, 2019. Picture taken February 10, 2019.   REUTERS/Nick Oxford/File Photo

Brad Crabtree, a Department of Energy official, met privately with companies on the issue in March and told Reuters standards are needed because the "downside of all the innovation and creativity is that it also is very chaotic."

Scientists have long warned that climate change, caused by greenhouse gas emissions mainly from burning fossil fuels, will make heat waves more frequent, severe and deadly. They say governments need to drastically reduce emissions to prevent climate catastrophe.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.