Letter to Hon. Joseph Biden, President of the United States - Sens. Cramer, Coons Call for U.S., EU Collaboration on Climate in Trade

Letter

Dear President Biden:

Thank you for your response to the unprovoked Russian invasion of Ukraine, including sanctions and other punitive measures implemented in collaboration with U.S. allies. There is strong bipartisan support in Congress for ensuring the security and sovereignty of Ukraine and nations across Europe. We also appreciate your recent announcement with European Commission President Ursula von der Leyen in Brussels on efforts to displace Russian natural gas exports to Europe. Putin's aggression against Ukraine, other partners in Europe, and elsewhere around the world underscores the strategic importance of blunting the Kremlin's malign influence and ability to use critical energy supply as a weapon.

As we look to the future, the United States, the European Union, and our other allies have an opportunity to demonstrate global leadership in reducing reliance on Russian fuels while promoting cleaner energy production.U.S. producers are willing to help meet European demand for LNG and innovate to reduce methane leakage. According to a 2019 report from the National Energy Technology Laboratory (NETL) that assessed the life cycle greenhouse gas emissions for natural gas in Europe, Russian natural gas delivered via pipeline has a much larger greenhouse gas footprint than U.S. LNG and significantly higher 20-year global warming potential because of methane emissions.[1]Increasing our exports of cleaner energy will have the dual benefit of reducing global greenhouse gas emissions while diminishing the leverage of bad actors.

To be successful, we must focus on the long-term opportunity to bolster our trade relationships with nations who prioritize clean, innovative energy sources.We have both called for consideration of trade policies that reduce global emissions and strengthen geopolitical alliances, through Senator Cramer's op-ed with Lt. General H.R. McMaster and Senator Coons'FAIR Transition and Competition Act.The European Union is moving towards implementation of a carbon border adjustment mechanism, with the goal of reducing the offshoring of energy-intensive industries to countries with less stringent environmental regulations. We have the same goal and support a system that rewards the responsible production of energy-intensive goods, while creating disincentives for dirty manufacturing. However, we are concerned that unilateral action could lead to discrimination against U.S. businesses, driving a wedge where there should be a bond. Your administration has succeeded in negotiating a framework with the European Union on steel and aluminum by focusing on our common responsible practices while rejecting the dumping of carbon-intensive products. We have the opportunity to build on this momentum and coordinate with other countries who share our commitment to environmental stewardship.

Russia's war in Ukraine has underscored the need for close cooperation with nations who share our values. It is time to stop rewarding cheap, dirty products that increase emissions and the geopolitical leverage of despots. We look forward to working with you to achieve these goals.

Sincerely,

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