The Role of Natural Gas in Advancing Sustainable Development Goals

Contribution to SDG 7: Affordable and Clean Energy

The provision of a secure, affordable, and reliable energy supply is a foundational element of sustainable economic strategy, directly aligning with the objectives of SDG 7. Natural gas has become a central component in achieving these goals within the United States. Its abundance has ensured manageable energy costs for both consumers and industries, promoting universal access to affordable energy.

• Household Affordability: Households utilizing natural gas for heating, cooking, and water heating achieve average annual savings of $1,132 compared to those reliant on electricity.
• Economic Competitiveness: Affordable energy lowers costs in critical sectors such as manufacturing and transportation, thereby controlling inflation and supporting business operations.
• Grid Reliability: Natural gas serves as a vital backstop for grid reliability, particularly during periods of peak demand, and complements the integration of variable renewable energy sources.

The transition from more carbon-intensive fuels to natural gas represents a significant step toward cleaner energy systems. This market-driven shift has concurrently lowered both emissions and costs, enhancing environmental and economic outcomes in line with SDG 7 targets.

Supporting SDG 8: Decent Work and Economic Growth

Affordable energy is a critical driver of economic growth and prosperity, a core tenet of SDG 8. By ensuring competitive energy prices, natural gas underpins the national economy, fostering an environment conducive to sustainable growth and decent work.

• Energy costs influence nearly every aspect of the economy, from production to the final cost of goods.
• The rise in domestic natural gas production has provided significant economic advantages, contributing to national prosperity.
• The International Energy Agency (IEA) reported that U.S. natural gas production helped reduce energy prices for consumers by as much as 60% in the first half of 2023.

Driving SDG 9: Industry, Innovation, and Infrastructure

The ascent of natural gas as a primary energy source was facilitated by a combination of policy, innovation, and infrastructure development, reflecting the principles of SDG 9. This transformation highlights the importance of investing in resilient infrastructure and fostering technological advancement.

1. Policy Decisions: Supportive federal regulatory policies enacted in the early 2000s enabled crucial infrastructure development and improved market access.
2. Private Sector Innovation: Technological breakthroughs in horizontal drilling and hydraulic fracturing were instrumental in unlocking vast domestic reserves.
3. Infrastructure for Growth: Continued energy growth is necessary to power emerging industries, including data centers and artificial intelligence, demanding further infrastructure investment.

Impact on SDG 13: Climate Action through Energy Transition

The displacement of coal by natural gas in electricity generation marks a substantial contribution to climate action efforts under SDG 13. This transition has led to a significant reduction in emissions from the power sector.

• Generation Shift: Since 2000, natural gas-fired electric generation has tripled, increasing from approximately 600 TWh to over 1,800 TWh.
• Coal Decline: Over the same period, coal-fired generation has decreased from 2,000 TWh to around 700 TWh.

This market-driven shift, confirmed by the U.S. Energy Information Administration and industry leaders, underscores the role of natural gas as a bridge fuel that facilitates a move toward a lower-carbon energy portfolio.

Geopolitical Dimensions and SDG 17: Partnerships for the Goals

The strategic value of U.S. natural gas extends to the global stage, reinforcing international partnerships and energy security, which aligns with the spirit of SDG 17. As a vital export, it strengthens America’s position abroad and supports allied nations.

• Supporting Allies: Natural gas exports are crucial for the energy security of partners in Europe and Asia.
• Global Competitiveness: A robust domestic supply enhances global competitiveness and provides stability in international energy markets.

Market Dynamics and Future Outlook

The Economic Realities of the Energy Market

Market forces, primarily competitive pricing, have driven the transition toward natural gas. In 2023, the average U.S. Henry Hub spot price for natural gas was below that of coal on an annualized basis for the first time, highlighting a fundamental market shift toward cleaner and more efficient energy. While litigation has alleged market manipulation contributing to coal’s decline, coal producers themselves have consistently identified lower natural gas prices and increased gas plant capacity as the primary drivers of reduced demand for coal.

A Pragmatic Approach to Future Energy Policy

Future energy policy must be grounded in market realities and prioritize a pragmatic, “all-of-the-above” approach. Natural gas effectively meets the three critical criteria for a sustainable energy future: affordability, reliability, and strategic value. Restraining its production or market access would risk undermining progress toward key Sustainable Development Goals by increasing costs, reducing reliability, and diminishing global competitiveness.

SDGs Addressed in the Article

SDG 7: Affordable and Clean Energy

• The article’s central theme is the importance of affordable and reliable energy. It states, “Affordable energy is the secret sauce that powers every economy,” and emphasizes that fostering a “secure, affordable, and reliable energy supply remains a cornerstone of any credible economic strategy.” The discussion revolves around natural gas as a source that has kept costs “manageable for consumers and businesses alike.”

SDG 8: Decent Work and Economic Growth

• The article links energy directly to economic prosperity, stating that nations “with an abundance of energy prosper, while those experiencing energy poverty experience weakness and decline.” It highlights how domestic natural gas production has provided “economic and geopolitical advantages” and how rising energy prices “drive inflation and ripple through the economy,” connecting energy policy directly to overall economic health.

SDG 9: Industry, Innovation, and Infrastructure

• The text discusses the role of “private sector innovations in horizontal drilling and hydraulic fracturing” and “supportive federal regulatory policies” that “enabled infrastructure development.” It also describes the market-driven shift from coal to natural gas as a move toward “cleaner, more efficient energy sources” and “more flexible, lower-emission and cost-effective solutions,” which reflects the upgrading of industrial infrastructure (power generation).

SDG 13: Climate Action

• The article addresses climate action by highlighting the environmental benefits of shifting from coal to natural gas. It notes that this “market-driven shift has significantly lowered emissions” and describes natural gas as a “cleaner” fuel and a “lower-emission” solution compared to coal. This directly relates to actions taken to mitigate climate change by altering the energy mix.

Identified SDG Targets

Target 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services.

• The article directly supports this target by focusing on the affordability and reliability of natural gas. It mentions that households using natural gas “save $1,132 on average annually” and that the fuel serves as a “backstop for grid reliability during peak demand.” The entire piece argues for policies that prioritize “affordability, reliability, and strategic value” in energy.

Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and processes.

• This target is reflected in the article’s description of the U.S. energy sector’s transition. The shift from coal-fired generation to natural gas is presented as an upgrade to a “cleaner, more efficient” and “lower-emission” technology. The article quotes an expert stating the decline in coal “reflects a clear long-term shift towards more flexible, lower-emission and cost-effective solutions.”

Target 13.2: Integrate climate change measures into national policies, strategies and planning.

• The article implies this target by discussing the outcome of U.S. energy policy and market shifts. It states that the transition to natural gas “has significantly lowered emissions and costs, enhancing both environmental and economic outcomes.” While not framed explicitly as a climate policy, the result is a reduction in emissions from the power sector, which is a key climate change measure.

Mentioned or Implied Indicators

Indicator for Affordability (Target 7.1)

• The article provides specific quantitative data on energy affordability. It states that “Households that rely on natural gas for heating, cooking and water heating save $1,132 on average annually.” It also mentions that U.S. natural gas production “helped lower energy prices for consumers by up to 60% during the first half of 2023.” The Henry Hub spot prices are also mentioned as a key market indicator of cost.

Indicator for Energy Mix Shift (Targets 9.4 & 13.2)

• The article provides clear data to measure the change in the energy mix, which serves as an indicator of progress towards cleaner technology and lower emissions. It specifies that “Natural gas electric generation has tripled since 2000, growing from roughly 600 TWh to over 1,800 TWh, while coal-fired generation has declined from 2,000 TWh to around 700 TWh.” This quantifies the retrofitting of the energy industry.

SDGs, Targets, and Indicators Analysis

Source: utilitydive.com