Ceres issued the following statement in response to the introduction of companion legislation introduced yesterday in the U.S. House of Representatives that would repeal provisions of the Methane Emissions Reduction Program (MERP), introduced in the 2022 Inflation Reduction Act.
“The Methane Emissions Reduction Program benefits and strengthens the U.S. energy industry. By reducing waste, bringing more gas to the marketplace, and maintaining access to global markets that are seeking transparency on methane pollution, the program increases competitiveness for U.S. oil and gas producers,” said Andrew Logan, senior director, Ceres. “If U.S. companies want to be competitive in these markets, they need to show they are controlling highly potent methane pollution. We encourage members of Congress to oppose the Congressional Review Act resolutions introduced yesterday.”
Reducing methane pollution is the fastest, most cost-effective way to immediately slow the current rate of global warming. The U.S oil and gas industry has already been provided with $1.36 billion in financial and technical assistance through MERP to limit pollution from methane. The legislation introduced yesterday specifically targets the waste emissions charge provision of the program, which applies a fee on excessive levels of methane pollution from oil and gas producers that do not meet reduction targets set by the industry.
It is estimated that oil and gas operations across the U.S. create more than 6 million tons of methane annually, which amount to $1 billion in lost commercial value for energy producers. When accounting for harm to the economy and human well-being, the annual cost rises to $10 billion. In acknowledgment of this economic impact, investors representing $2 trillion in assets under management last year called on states to meet or exceed the EPA’s standards to substantially reduce pollution from methane.
About Ceres
Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and sustainable world. United under a shared vision, our powerful networks of investors and companies are proving sustainability is the bottom line—changing markets and sectors from the inside out. For more information, visit ceres.org.