NEW ORLEANS – Louisiana has joined Indiana, Ohio, and Tennessee in legally redefining natural gas as “green energy,” with Governor Jeff Landry signing Act 462 into law in June.
“This bill sets the tone for the future and will help the state pursue energy independence and dominance,” Gov. Landry said.
But critics say the law could allow funds meant for clean energy initiatives to be used to support natural gas, which emits carbon dioxide and leaks methane, a potent greenhouse gas. In Louisiana, natural gas powers nearly 80% of the electric grid.
Environmental groups warn this move is part of the fossil fuel industry’s efforts to rebrand natural gas as climate-friendly and hinder the shift to renewable energy sources such as solar, wind, hydro, and geothermal.
Cleaner Than Coal?
Natural gas has surpassed coal as the top U.S. electricity source for the past decade, producing about half the carbon dioxide of coal when burned. However, its primary component, methane, is a much more potent greenhouse gas than CO₂ and contributes around 30% of current global warming.
Rob Jackson, a climate scientist at Stanford University, cautioned that building new gas plants locks in decades of fossil fuel emissions.
“Besides coal, everything else is better than gas for the planet. Building new gas plants locks in fossil fuel emissions for decades,” said Rob Jackson, the Michelle and Kevin Douglas Provostial Professor of Earth System Science and Senior Fellow at both the Woods Institute for the Environment and the Precourt Institute for Energy. Jackson also chairs the Global Carbon Project.
Louisiana’s New Law
The law explicitly instructs state agencies and utility regulators, including the Department of Energy and Natural Resources, the Public Service Commission, and the Department of Economic Development, to prioritize natural gas and nuclear energy sources.
The bill’s sponsor, Rep. Jacob Landry, who co-owns the oil and gas consulting firms Industrial & Oilfield Services and Enviro-Resources LLC, recently stated that natural gas is crucial because “the wind don’t blow all the time and the sun don’t shine every day.”
Governor Landry claims the law will bolster Louisiana’s energy independence and attract businesses, citing Meta’s plan to build a $10B AI data center in Richland Parish to be powered by three, purpose-built natural gas plants built by Entergy.
In comments to The Associated Press, Louisiana Public Service Commissioner Davante Lewis, a Democrat, called the new law “unenforceable” and vowed to disregard it, arguing that it effectively forces loyalty to natural gas at the expense of market-driven clean energy alternatives.
Meanwhile, Republican Commissioner Jean-Paul Coussan said, “Promoting natural gas aligns well with the state’s economic growth.”
All of the Above
The new law goes against Louisiana’s previously held “all of the above” approach to energy which embraced a mix of fossil fuels like natural gas and oil alongside renewables and nuclear power, aiming to balance economic growth, energy reliability, and environmental concerns.
Consumer advocates, economic development agencies, clean energy companies, and researchers all argue that reliable electricity does not require favoring natural gas over wind, solar, or other clean technologies.
Last year, roughly 41% of global power came from clean sources, and over 75% of the increase in electricity use was met by renewables.
A recent Reuters special report reveals that global business leaders remain firmly committed to the clean energy transition, with 91% maintaining or increasing investments in net-zero strategies. The findings come from the 2025 Business Breakthrough Barometer survey, which demonstrates the widespread corporate belief that “the cost of inaction exceeds the cost of transitioning.”
The report indicates that companies widely view sustainability not only as a climate imperative but as an economic necessity, warning that regions slow to embrace clean energy risk missing out on significant business opportunities and innovation gains.
