Washington, DC – Today, Congresswoman Julia Brownley (D-CA) announced the reintroduction of the Methane Border Adjustment Mechanism Act, which would impose a tax on methane emissions from foreign oil and natural gas producers. The bill expands on the domestic methane fee enacted by the Inflation Reduction Act, extending the same fee to any country exporting oil or gas to the U.S. This approach levels the playing field for U.S. producers while ensuring compliance with international trade agreements and World Trade Organization (WTO) standards.
“Methane is a powerful greenhouse gas with about 80 times the warming power of carbon-dioxide on a 20-year horizon. In fact, estimates suggest that at least 25 percent of the rise in global temperatures since the Industrial Revolution can be attributed to methane emissions. But the impacts of methane are not limited to our environment – methane is also a key contributor to the formation of ground level ozone and particulate pollution that pose concerning health risks for the American public,” said Congresswoman Julia Brownley.
“As leaders for sustainability on the global stage, the United States is taking the necessary action to reduce harmful methane emissions. Establishing a Methane Border Adjustment Mechanism (MBAM) would incentivize other countries to meet our nation’s climate standards while reducing the emissions that contribute to global climate crisis,” added Brownley.
A Methane Border Adjustment Mechanism (MBAM) would incentivize global oil and natural gas producers to reduce methane emissions by imposing a fee on those emissions for exports to the U.S. While the domestic price of fossil fuels would see minimal impact, the reduction in methane emissions would be significant. The policy is designed to ensure consistency with international trade agreements and WTO standards while creating a level playing field for U.S. producers.
The full text of the bill can be found here.
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Issues: 119th Congress, Climate Crisis, Energy, Energy and Environment, Environment, Environmental Protection