By Rebecca Shabad
The Biden administration has taken a significant step towards combating climate change by pausing approvals of pending applications for liquefied natural gas (LNG) exports to countries with which the United States does not have free trade agreements. This decision is motivated by environmental concerns and the need to update outdated economic and environmental analyses.
Evaluating and Updating Guidance
While the temporary halt is in effect, the Energy Department will evaluate and update the guidance used to make authorizations. The Biden administration has stated that the current analyses are insufficient in accounting for potential energy cost increases for American consumers and manufacturers, as well as the latest assessment of greenhouse gas emissions’ impact. Recognizing the urgency of the climate crisis, President Biden emphasized that his administration will closely examine the effects of LNG exports on energy costs, America’s energy security, and the environment.
The Significance of the Pause
“This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time,” declared President Biden. He highlighted the contrast between his administration’s commitment to addressing climate change and the denial displayed by some politicians. Biden’s administration refuses to be complacent or favor special interests, instead prioritizing the well-being of the American people and the planet.
Ensuring Energy Needs
The United States is currently the top exporter of LNG globally, with a significant proportion of exports going to Europe. Energy Secretary Jennifer Granholm assured allies that the pause will not affect already authorized exports or the ability to supply Europe, Asia, and other recipients of approved exports. The Department of Energy remains dedicated to meeting the medium-term energy needs of partner countries. In exceptional cases of national security emergencies, exceptions may be made.
The Importance of Liquefied Natural Gas
Liquefied natural gas is natural gas cooled to a liquid state for shipping and storage purposes, as explained by the Energy Department. To export natural gas, companies must obtain authorization from the Office of Fossil Energy and Carbon Management within the department.
Image: Liquefied natural gas terminal
Taking a Stand for the Planet
President Biden’s decision to halt approvals of LNG exports represents a crucial step towards prioritizing the fight against climate change. By recognizing the urgency of the climate crisis and considering the impact of LNG exports on energy costs, energy security, and the environment, the administration is sending a powerful message. The United States remains committed to reducing its environmental footprint and protecting the future of the planet.