The U.S. Environmental Protection Agency (EPA) has proposed a fee on methane emissions from large oil and gas facilities, following the 2022 climate law requirements. The fee applies to facilities reporting methane emissions over 25,000 metric tons of CO2 equivalent annually. Starting at USD900 per ton in 2024, it increases to USD1,200 in 2025 and USD1,500 for 2026 and beyond. The fee targets emissions exceeding specified levels, and facilities reducing emissions may qualify for compliance exemptions over time. The proposal aims to complement technology standards and the Inflation Reduction Act, encouraging industry innovation and prompt action to curb methane emissions, which have a higher warming potential than carbon dioxide. The IRA, passed in 2022, covers less than half of the sector's methane emissions due to concessions made for political support.

Source:  Reuters