Balancing U.S. Natural Gas within a Global Net-Zero Emissions Future
Russia’s war in Ukraine has scrambled global and European energy markets, and European leaders are looking to the United States and other producers for additional liquefied natural gas (LNG) to replace Russian gas. However, not long before the invasion, European buyers were turning away from US LNG due to climate concerns and the EU’s 2030 and 2050 climate commitments. How can US LNG exports help meet short-term energy security demand, while also remaining consistent with a rapidly decarbonizing Europe? US LNG has the potential to be the cleanest in the world, helping to retain its competitiveness through 2030 and beyond. But in order to do this, the industry will need a policy framework that supports innovation in carbon management and best practices for methane emissions through a mixture of regulations and tax policy.
John Larsen, Rhodium Group partner and non-resident senior associate in the Energy Security and Climate Change Program at the Center for Strategic and International Studies, tackles this question in a new commentary for CSIS.