Joe Biden Halts Natural Gas Exports Over 'Existential' Climate Threat

The Biden administration has announced it is placing a temporary pause on exports of natural gas as it described climate change as "the existential threat of our time."

The White House said on Friday that pending decisions on whether to allow liquefied natural gas (LNG) to be sold to countries the U.S. does not share a free trade agreement with would be halted until the Department of Energy devises new criteria for authorizations that consider the cost to the American economy and to the environment the exports could cause.

"We must act with the urgency [climate change] demands to protect the future for generations to come," it said, adding the administration "will continue to lead the way in ambitious climate action while ensuring the American economy remains the envy of the world."

As the 2024 election moves into view, President Joe Biden's climate credentials have increasingly come under scrutiny. While he has attempted to push America towards a green economy with the Inflation Reduction Act (IRA), oil production rose to a new record under his watch, with environmentalists calling on the president to curb fossil fuel exports.

The move was welcomed by environmentalists as a step toward tackling climate change that would incentivize other nations to switch to renewables, but one urged the Biden administration to consider broadening the measure to other fossil fuel exports.

"The science is clear that we need to rapidly decrease fossil fuel consumption and production if we are to meet our climate goals. The U.S. needs to help lead this effort," Jake Schmidt, senior strategic director of international climate at the Natural Resources Defense Council, told Newsweek.

"The U.S.'s continued expansion of LNG is getting in the way of the global clean energy transition so this policy will help our friends around the world be able to embrace their cost-competitive renewable energy," he added.

"Today's much-needed pause on LNG exports is so that we can take the time to let the public weigh in and shape a policy that protects climate and health impacts from these fossil fuel projects.

Jean Su, an environmental lawyer with the Center for Biological Diversity Action Fund in Washington, D.C., told Newsweek that the decision was "a major step in the right direction, but the temporary pause needs to be immortalized with a robust public interest test that can stop all dangerous fossil fuel exports projects moving forward."

She said it was critical that America, as the largest gas producer, start the winding down of global fossil fuel usage to break the "perpetual downward spiral" of countries "refusing to act...because they allege that others will keep drilling."

"The U.S. pause will have a major effect on economically signaling to the world that the phaseout of fossil fuels is starting," Su added.

The move was opposed by fossil fuel industry lobbyists. In a statement, American Petroleum Institute CEO Mike Sommers claimed it was "a win for Russia and a loss for American allies, U.S. jobs and global climate progress."

He argued that American LNG was helping countries transition to cleaner fuels and called on the Biden administration to "stop playing politics with global energy security."

Newsweek reached out to the White House via email on Friday for comment.

As well as limiting the impact on the climate that burning natural gas can have, the Biden administration cited recent pressures on its gas supply that had put a strain on domestic energy prices.

The Russian invasion of Ukraine in 2022 sent energy prices skyrocketing, and the cutting of natural gas supply to Europe by Moscow pushed the U.S. to increase its exports to the continent.

The White House said in 2023 that roughly half of the U.S.'s LNG exports went to Europe, which would not be affected by the pause as it "remains unwavering in our commitment to supporting our allies around the world."

However, a reduction in exports to other countries is expected to increase supply to the domestic market, lowering prices for consumers.

"Today's pause is a critical step away from the current status quo of unchecked LNG expansion, and it will have a tremendous benefit for American consumers, who won't have to pay higher prices at home," Schmidt said.

Asked about whether low gas prices might, inadvertently, make the transition to green economy harder to sell to consumers, Su said that while the temporary increase in domestic supply may push down gas prices in the short-term, "ultimately, a cease in exports is likely to drive down gas production, as the original boom in fracking production was driven by the opening of exports.

"Renewables are cost-competitive, especially with IRA benefits, and the green transition should still be on track."

The White House also noted the LNG export pause's intention to "guard against risks to the health of our communities, especially frontline communities in the United States who disproportionately shoulder the burden of pollution from new export facilities."

Update 1/26/24, 11 a.m. ET: This article was updated to include further information throughout, as well as comments from Jean Su and Jake Schmidt.