Biden pauses oil and gas leases, cuts subsidies to act on climate

U.S. President Joe Biden signed a raft of executive actions on Wednesday to combat climatechange, including pausing new oil and gas leases on federal landand cutting fossil fuel subsidies, as he pursues green policieshe billed as a boon to the economy.

The orders map out the direction for the Democraticpresident's climate change and environmental agenda and mark areversal from policies under his Republican predecessor DonaldTrump, who sought to maximize U.S. oil, gas and coal output byremoving regulations and easing environmental reviews.

"In my view, we've already waited too long to deal with thisclimate crisis," said Biden at a White House ceremony, notingthe threats the nation faces from intensifying storms, wildfiresand droughts linked to climate change.

"This is a case where conscience and convenience crosspaths, where dealing with this existential threat to the planetand increasing our economic growth and prosperity are one andthe same. When I think of climate change and the answers to it,I think of jobs," added Biden.

Biden said building a modern and resilient climate-relatedinfrastructure and a clean energy future for the countrywould create millions of good-paying union jobs.

His focus on climate change has cheered internationalpartners and environmental advocates, but upset Big Oil, whichargues that the moves will cost the U.S. millions ofjobs and billions of dollars in revenue at a time when the U.S.economy has been battered by the COVID-19 pandemic.

U.S. special climate envoy John Kerry also said the countryplans to announce before an international climate summitthat Biden will hold on Earth Day, April 22, a target for reducingits greenhouse gas emissions by 2030 under the Paris climateaccord. Trump had abandoned the agreement, but Biden rejoined itlast week.

China leads the world and the U.S. is second insuch emissions, which scientists link to a warming climate.

Kerry indicated the U.S. would work with China butwould not trade other pressing concerns to make climateprogress. Biden directed the Interior Department to pause new federaloil and gas leases on public lands or offshore waters "to theextent possible" and review the program's climate impacts andtaxpayer benefits.

The pause will not restrict energy activitieson lands that the government holds in trust for Native Americantribes. Biden authorized a "rigorous review" during the pause of allexisting leasing and permitting practices related to fossil fueldevelopment on public lands and waters.

Biden also set a goal toconserve 30 per centof federal land and waters to protect wildlife by2030 and seek to double renewable energy production fromoffshore wind, also by 2030.

The orders impact large swathes of land onshore in mostlyWestern states, as well as offshore drilling acreage locatedmainly in the U.S. Gulf of Mexico, which combined make up abouta quarter of the nation's oil and gas supply.

The measure hasdrawn criticism from some states that depend on drillingrevenue.

Biden also directed federal agencies to "eliminate fossilfuel subsidies as consistent with applicable law." It was notclear which subsidies could be stripped away under this order,given many of the industry's tax breaks are congressionallyapproved. Biden also said he would ask Congress to end subsidiesthrough legislation.

Another order establishes climate considerations as anessential element of U.S. foreign policy and national security.

"It's not time for small measures. We need to be bold,"Biden said.

'A strategic engine'

John Hess, CEO of energy company Hess Corp, said theBiden administration must keep in mind the impacts of itsclimate change agenda on jobs and energy security.

"They have to realize that oil and gas are a strategicengine for the U.S. economy," Hess told Wall Street analysts.

Abraxas Petroleum CEO Bob Watson separately toldReuters, "In my many years in this business, this is the worstdownturn I have lived through, and this is not going to help arecovery."

Biden also faces pressure from liberals in his own party foraggressive action to address climate change. Senate MajorityLeader Chuck Schumer on Wednesday called on Biden to declare anational emergency on climate change, calling such a move "agiant step in the right direction" that would let the presidenttap additional resources to achieve his goals.

Biden's new orders include the creation of new climatechange positions and an inter-agency task force within hisadministration, and measures to boost federal procurement ofU.S.-sourced clean energy and vehicles, protect scientists frompolitical interference, and assist communities most affected byindustrial pollution.