The Biden Administration’s recent pause on permits for LNG exports to non-FTA countries has sparked industry-wide debate. While motivated by climate concerns, the pause could delay the retirement of coal-fired plants in emerging economies, paradoxically slowing greenhouse gas (GHG) reductions.
The U.S. has successfully cut its CO2 emissions by 18% since 2005, largely by switching from coal to natural gas (see Exhibit 1). Emerging economies could benefit from this strategy, and the U.S. should facilitate this transition with LNG exports aligned with the Paris Accord’s goals.
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