Biden climate plan aims to reduce methane emissions

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Updated 02 November 2021
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Biden climate plan aims to reduce methane emissions

  • The administration's plan includes new safety regulations by the Transportation Department to tighten requirements over methane leaks

The Biden administration is launching a wide-ranging plan to reduce methane emissions, targeting a potent greenhouse gas that contributes significantly to global warming and packs a stronger short-term punch than even carbon dioxide.


The plan was being announced Tuesday as President Joe Biden wraps up a two-day appearance at a United Nations climate summit in Glasgow, Scotland. Biden pledged during the summit to work with the European Union and other nations to reduce overall methane emissions worldwide by 30 percent by 2030.


The centerpiece of U.S. actions is a long-awaited rule by the Environmental Protection Agency to tighten methane regulations for the oil and gas sector, as laid out in one of Biden's first executive orders.


The proposed rule would for the first time target reductions from existing oil and gas wells nationwide, rather than focus only on new wells as previous regulations have done.


EPA Administrator Michael Regan said the new rule, established under the Clean Air Act, would lead to significant reductions in methane emissions and other pollutants and would be stricter than an Obama-era standard set in 2016. Congress reinstated the Obama standard last summer in a rare effort by majority Democrats to use the legislative branch to overturn a regulatory rollback under President Donald Trump.


“As global leaders convene at this pivotal moment in Glasgow for COP26, it is now abundantly clear that America is back and leading by example in confronting the climate crisis with bold ambition,” Regan said, referring to the climate summit.


EPA's “historic action" will “ensure robust and lasting cuts in pollution across the country,'' Regan said. The new rule will protect communities near oil and natural gas sites and advance U.S. climate goals under the 2015 Paris Agreement, he said.


The oil and natural gas industry is the nation’s largest industrial source of methane, a highly potent pollutant that is responsible for about one-third of current warming from human activities.


The oil and gas sector also is a leading source of other harmful air pollutants, including volatile compounds that contribute to ground-level ozone, or smog, and air toxins such as benzene that are emitted along with methane.


Environmental groups call methane reduction the fastest and most cost-effective action to slow the rate of global warming. Current rules for methane emissions from U.S. oil and gas wells only apply to sources that were built or modified after 2015, leaving more than 90% of the nation’s nearly 900,000 well sites unregulated.


The American Petroleum Institute, the oil and gas industry’s top lobbying group, has said it supports direct regulation of methane emissions from new and existing sources but opposes efforts in Congress to impose fees on methane leaks, calling them punitive and unnecessary.

The industry says leaks of methane, the main component of natural gas, have decreased even as natural gas production has gone up as a result of the ongoing fracking boom. Technological advancements in recent years have make finding and repairing natural gas leaks cheaper and easier.


The administration's plan includes new safety regulations by the Transportation Department to tighten requirements over methane leaks from the nation's 3 million miles of pipelines.


The Interior Department, meanwhile, is preparing to crack down on methane waste burned at drilling sites on public lands. And the Agriculture Department is working with farmers to establish so-called climate-smart standards to monitor and reduce greenhouse gas emissions and increase carbon storage.


The plan focuses on cutting pollution from the largest sources of methane emissions and uses financial incentives, public disclosure and private partnerships to reduce leaks and waste, protect workers and communities and create union-friendly jobs, a senior administration official said at a briefing Monday.

The official asked not to be named because the person was not authorized to speak before the actions were publicly announced.


Biden has previously announced plans to step up efforts to plug leaks at old gas wells and clean up abandoned coal mines.

A bipartisan infrastructure bill approved by the Senate includes billions to reclaim abandoned mine land and cap orphaned wells.


The administration also is taking aim at methane emissions from landfills, with emphasis on food loss and waste that serves as a major contributor. EPA has set a voluntary goal of capturing 70 percent of methane emissions from U.S. landfills.
 


Saudi stocks rebalance after Kingdom opens market to global investors

Updated 05 February 2026
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Saudi stocks rebalance after Kingdom opens market to global investors

  • Foreign access reforms trigger short-term volatility while underlying market fundamentals hold

RIYADH: Saudi Arabia’s stock market experienced a volatile first week following a landmark decision to fully open the market to foreign investors—a move analysts view as essential to funding the Kingdom’s sweeping economic transformation plans.

The Tadawul All Share Index began the week with a sharp decline, falling 1.89 percent on Feb. 1, the same day new regulations eliminating key restrictions on international investment officially came into force. The index rebounded the following session and remained in positive territory for three consecutive days before slipping once more, ultimately ending the week down 1.34 percent.

Ownership data from Tadawul as of Feb. 1 indicated that foreign non-strategic investors reduced their holdings in nearly half of the companies listed on the TASI. An analysis conducted by Al-Eqtisadiah’s Financial Analysis Unit showed that foreign ownership declined in 120 firms, increased in 97 others, and remained unchanged across the remainder. Despite these shifts, the total number of shares held by foreign investors showed no overall change.

Speaking to Arab News, economist Talat Hafiz addressed the initial volatility in the TASI, explaining: “Stock markets in the Kingdom and globally naturally experience fluctuations driven by profit-taking and price corrections.”

He added that the index’s decline and subsequent recovery “appears to be primarily the result of technical and sentiment-related factors rather than a direct reaction to the opening of the market to foreign investors.”

Hafiz emphasized that this was particularly evident given that foreign participation in the Saudi market is not entirely new, having previously existed under alternative regulatory structures.

The market turbulence coincided with sweeping reforms enacted by the Capital Market Authority and announced in January. These measures included the removal of the restrictive Qualified Foreign Investor framework, which had imposed a $500 million minimum asset requirement, as well as the elimination of swap agreements. The reforms aim to attract billions of dollars in fresh investment while improving overall market liquidity.

Hafiz noted that an initial surge of foreign capital was widely expected to generate short-term volatility as portfolios were rebalanced and liquidity dynamics adjusted. However, the rapid recovery of the index suggests that the market’s underlying fundamentals remained strong and that investor confidence was not significantly undermined.

Earlier in January, experts had told Arab News that the reforms could unlock as much as $10 billion in new foreign inflows. Tony Hallside, CEO of STP Partners, described the move as a pivotal evolution, signaling that the Kingdom is committed to building the most accessible, liquid, and globally integrated financial markets in the region.

Hafiz reinforced this optimistic outlook, stating that broader market access is likely to yield positive effects by boosting liquidity, widening participation, and supporting overall market recovery—ultimately contributing to greater long-term stability once near-term adjustments ease.

He said: “TASI’s swift rebound reflects the market’s constructive response to increased openness and deeper investor participation.”

Hafiz said he does not believe the market opening is primarily intended to function as a conventional financing channel. Instead, he argued that its broader objective lies in the internationalization of the Saudi market, a goal underscored by its inclusion in major global indices.

He explained that attracting foreign capital should be understood less as a short-term funding solution and more as a structural reform aimed at strengthening market depth, efficiency, transparency, and global integration.

The Saudi economist added that while increased foreign participation can indirectly support Vision 2030 by enhancing liquidity and reducing the cost of capital, the opening of the market is “not designed as a direct mechanism to revive or fast-track projects that may have faced funding constraints.”

Rather, it creates a more resilient, globally connected financial ecosystem that can sustainably support long-term development ambitions, according to Hafiz.

As the market continues to stabilize, investors and observers are monitoring which sectors are expected to attract the largest share of investment in the coming weeks and months.

Hafiz told Arab News that foreign investment is expected to initially focus on companies operating in strategically significant, high-growth sectors such as healthcare, transportation, and technology, in addition to mining, energy, and telecommunications.

He added that experienced foreign investors are likely to gravitate toward firms demonstrating strong financial disclosure practices, sound corporate governance, adherence to environmental, social and governance standards, and a track record of consistent dividend payouts.