Natural Gas and Climate Policy

Laser Talk

This page was updated on 12/21/18 at 23:00 CST.

Question:  Where does natural gas fit in climate policy?

Answer: Natural gas produces fossil-based CO₂, but significantly less than coal or oil for the same amount of energy produced. [1] When burned for electricity, that advantage widens because modern natural gas power plants are much more efficient than coal plants. [2]

Unlike coal, though, natural gas can leak into the air. When that happens, its main component – methane – is a far more potent greenhouse gas than CO₂. [3] Estimates of ‘fugitive emissions’ vary from 1.2 to 3.3 percent of natural gas consumed, [4,5] but an in-depth 2017 analysis of  available literature concluded that even with current leakage, replacing coal-generated power with state-of-the-art natural gas power still reduces GHG emissions by about 45 percent. [6]

The Energy Innovation and Carbon Dividend Act does not apply the carbon fee to leaked methane, because scientific consensus on accurate measurement and attribution is lacking. It does, however, allow continuation of an ongoing EPA program to cut industrial leakage of natural gas by 40 to 45 percent. [7]

CCL holds that a 90 percent cut in fossil greenhouse gas emissions by 2050, as mandated by H.R.7173, is necessary to achieve a livable future. How long can natural gas remain in the mix and still meet this target? Should it serve as backup for intermittent renewables like wind and solar? [8] Can it be safely combined with CO₂ capture and sequestration? [9] Should it be used in transportation? [10]

CCL maintains that the aggressive carbon pricing schedule of the Energy Innovation and Carbon Dividend Act, in concert with continuing federal regulations to cut methane leakage, will compel the marketplace to answer these questions in the most effective, efficient, and long-lasting way.