The Biden administration has announced it is placing a temporary pause on exports of natural gas as it described climate change as “the existential threat of our time.”
The White House said on Friday that pending decisions on whether to allow liquefied natural gas (LNG) to be sold to countries the U.S. does not share a free trade agreement with would be halted until the Department of Energy devises new criteria for authorizations that consider the cost to the American economy and to the environment the exports could cause.
“We must act with the urgency [climate change] demands to protect the future for generations to come,” it said, adding the administration “will continue to lead the way in ambitious climate action while ensuring the American economy remains the envy of the world.”
As the 2024 election moves into view, President Joe Biden’s climate credentials have increasingly come under scrutiny. While he has attempted to push America towards a green economy with the Inflation Reduction Act, oil production rose to a new record under his watch, with environmentalists calling on the president to curb fossil fuel exports.
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As well as limiting the impact on the climate that burning natural gas can have, the Biden administration cited recent pressures on its gas supply that had put a strain on domestic energy prices.
The Russian invasion of Ukraine in 2022 sent energy prices skyrocketing, and the cutting of natural gas supply to Europe by Moscow pushed the U.S. to increase its exports to the continent.
The White House said in 2023 that roughly half of the U.S.’s LNG exports went to Europe, which would not be affected by the pause as it “remains unwavering in our commitment to supporting our allies around the world.”
However, a reduction in exports to other countries is expected to increase supply to the domestic market, lowering prices for consumers.
“We also must adequately guard against risks to the health of our communities, especially frontline communities in the United States who disproportionately shoulder the burden of pollution from new export facilities,” the White House said.
This is a developing story and will be updated with further details shortly.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.