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American Focus > Blog > Environment > Trump repeals America’s first-ever tax on greenhouse gases
Environment

Trump repeals America’s first-ever tax on greenhouse gases

Last updated: March 17, 2025 2:14 pm
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Trump repeals America’s first-ever tax on greenhouse gases
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The recent repeal of the methane fee by Republicans in the House and Senate, signed into law by President Donald Trump, has dealt a significant blow to the country’s climate goals. This action is part of a broader effort by Republicans to dismantle Biden-era advancements on climate change, regardless of the potential economic impact.

Methane, a potent greenhouse gas, is responsible for a significant portion of global warming since the Industrial Revolution. U.S. oil and gas operations are major contributors to methane emissions, releasing millions of metric tons into the atmosphere each year. The implementation of a federal tax on methane emissions was a key part of President Biden’s climate agenda, aimed at reducing greenhouse gas emissions.

The Inflation Reduction Act, signed by Biden in 2022, included provisions for a methane fee on major producers of oil and gas. The fee was designed to tax companies for exceeding a certain threshold of methane emissions and incentivize the adoption of technologies to reduce emissions. However, the repeal of this rule has halted its implementation, preventing the collection of penalties from non-compliant companies.

The methane fee would have been the first federal tax directly imposed on a greenhouse gas, targeting a significant portion of methane emissions from oil and gas infrastructure in the U.S. The fee had the potential to divert a substantial amount of methane emissions and make a meaningful impact on reducing greenhouse gas emissions.

While some oil majors supported the initiative, other parts of the oil and gas industry and Republicans in Congress opposed it, citing concerns about its impact on business and energy prices. However, official reports indicate that the U.S. oil and gas industry is thriving, with record production levels and export capabilities.

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Despite its limited impact on overall methane emissions, experts view the methane fee as a positive step towards addressing climate change. While challenges remain in regulating methane emissions from agriculture and waste sectors, the fee represented progress in tackling a significant source of greenhouse gas emissions.

Overall, the repeal of the methane fee represents a setback in the country’s efforts to combat climate change and underscores the ongoing political challenges in implementing effective climate policies. Methane is a potent greenhouse gas that is significantly contributing to climate change. As the urgency to address climate change grows, many are turning to methane as a key target for reduction. In fact, some are even calling methane an “emergency brake” that needs to be applied immediately in order to mitigate the impacts of climate change.

Recently, Republicans in Congress have targeted several climate and environment policies, including a methane fee, using the Congressional Review Act. This act allows lawmakers to reverse recently-passed regulations with a simple majority vote. While Republicans successfully repealed the EPA rule establishing the methane fee, the provision allowing for such a fee to be implemented still stands. This means that a future presidential administration could potentially reinstate the methane fee.

However, Republicans have made it clear that they plan to repeal as much of the provision as possible, including the parts that empower the EPA to regulate greenhouse gas emissions. This puts the future of methane regulation in jeopardy, as efforts to reduce emissions could be significantly hindered.

It is crucial that action is taken now to address methane emissions. Methane is a powerful greenhouse gas, with a much greater impact on global warming than carbon dioxide. By reducing methane emissions, we can make significant strides in combating climate change and protecting our planet for future generations.

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As we navigate the challenges of climate change, it is essential that we prioritize methane reduction efforts. The clock is ticking, and we must act now to curb methane emissions and secure a sustainable future for our planet. The urgency to address methane as an “emergency brake” is clear, and it is up to us to take action before it’s too late.

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