EPA Proposal to End Greenhouse Gas Reporting
Last week on Friday, the Environmental Protection Agency (EPA) proposed ending reporting requirements for thousands of U.S. industrial facilities, known as the Greenhouse Gas Reporting Program (GHGRP), a program launched in 2010 to track emissions of carbon dioxide, methane, and other heat-trapping gases. The EPA cites potential compliance cost savings of up to $2.4 billion for businesses. This proposal follows other efforts from the Federal Administration to undermine key metrics and data that link greenhouse gases to climate change and public health.
The GHGRP currently covers thousands of the country’s largest industrial facilities, including coal-fired power plants, oil refineries, and steel mills, collecting data as a key tool to track carbon dioxide, methane, and other gases that are driving climate change. Data collected under the program has informed federal policy, supported international reporting obligations to the United Nations, and provided transparency for investors and communities assessing local pollution risks.
Under the current proposal, natural gas distribution facilities would stop reporting emissions entirely after the 2024 reporting year, creating an indefinite gap in federal data. Other oil and gas segments under Subpart W—such as production, transmission, and refineries—would see a temporary pause in reporting aligned with congressional delays to methane-related requirements, lasting until 2034. As a result, emissions data from these oil and gas facilities will not be collected by the EPA until 2034, creating a multi-year gap in federal reporting.
Implications for Carbon Markets and Carbon Management Projects
The potential removal of the GHGRP introduces uncertainty for carbon management projects that rely on robust emissions reporting to qualify for federal incentives, including tax credits for carbon capture and storage. These projects typically depend on verified emissions data submitted to the EPA; without the GHGRP, eligibility requirements and ongoing compliance monitoring could become unclear.
At this stage, the exact impact on active projects and broader market participation is unknown. Market participants, policymakers, and investors will be watching how the EPA addresses these gaps in data verification, which could affect project financing, carbon credit issuance, and corporate reporting practices.
Once published in the Federal Register, the proposal will enter a 47-day public comment period. The EPA is expected to finalize the rule within approximately a year. Stakeholders across the industry and the carbon markets ecosystem should monitor developments closely, as the rule could reshape how emissions data informs policy, investment, and compliance strategies.
ClearBlue will continue to monitor these developments and will provide updates as needed.