Louisiana Governor Jeff Landry recently issued Executive Order JML 25-119, halting the review of any new Class VI carbon dioxide injection well applications in the state.

Landry said that the pause is intended to ensure that local regulators catch up with the current applications, meeting all safety and environmental standards before moving forward. But as we’ve seen with moratoriums in the past (think LNG, federal leasing, and Pennsylvania’s fracking ban), they can have far-reaching impacts – a concern shared by business and industry leaders who worry about the potential economic and environmental implications associated with a longer pause.

The Need for Streamlined CCS Permitting

Louisiana has rapidly become a powerhouse in the carbon capture and storage (CCS) industry, with a pipeline of projects unrivaled in most of the country. Since obtaining Class VI primacy in 2024, Louisiana has received 33 Class VI well applications for CO₂ storage projects.

In fact, Louisiana is a top target for CCS investment thanks to its unique advantages: it sits near major industrial and energy corridors and boasts favorable geology (deep saline aquifers and porous rock formations) offering ample secure storage capacity for CO₂.

As a result, the state now hosts 43 announced CCS projects and 10 dedicated CO₂ pipelines in development, including 22 proposed carbon storage hubs that would collect emissions from multiple facilities. These projects expect over 42 million metric tons of CO₂ captured per year once operational,  and could generate more than $3.5 billion annually in federal carbon credit revenue via the 45Q tax incentive for CO₂ sequestration.

As the Louisiana Mid-Continent Oil & Gas Association (LMOGA) explains, the state has decades of experience safely handling CO₂ injections under a robust regulatory framework. LMOGA President Tommy Faucheux emphasized that:

“CO₂ transportation and injection have been a part of Louisiana’s energy industry for nearly 50 years, and there is a robust regulatory framework to ensure its continued safety.”

Ramifications of a Prolonged Moratorium

Gov. Landy’s order directs Louisiana’s Department of Conservation and Energy (DCE) to suspend consideration of new CCS project permits submitted after October 15, 2025, but does not provide an end date to lift the moratorium.

This is raising concerns amongst business and industry stakeholders, who warn that extending the moratorium for too long could derail Louisiana’s hard-won progress in CCS and send investment fleeing to other states. The executive order’s indefinite pause on new permits, while aimed at clearing the backlog, has injected uncertainty into the market.

Will Green, President and CEO of the Louisiana Association of Business highlighted this:

“…uncertainties send a message to the businesses that are in the pipeline, the projects that are in the pipeline that really send a chilling effect and a negative message, and so this is disappointing.”

“These are billions of dollars in projects with thousands of jobs on the line and when you have states like Texas that are begging for projects like this, it really creates a difficult regulatory scheme here in Louisiana.”

Indeed, Gov. Landry has repeatedly cited the economic benefits of CCS, announcing that the state’s projects could create up to 17,000 new jobs in the state and bring in $76 billion in capital spending.

However, that is only if they are allowed to continue.

The American Petroleum Institute expressed greater concerns about the pause’s impact on energy competitiveness. API Gulf Coast Region Executive Director Gifford Briggs commented:

“We share the governor’s goal of addressing the backlog of CCS project applications, but an indefinite moratorium undermines Louisiana’s energy leadership and sets a precedent that could discourage development and innovation across the Gulf Coast and the nation. This executive order creates uncertainty that could delay projects, and send jobs and opportunities elsewhere. Now, Louisiana’s leadership role in American energy security is in jeopardy.”

Bottom Line: CCS is a proven, safe technology, already deployed for years in Louisiana. While streamlining permitting is a shared goal, an indefinite moratorium risks undermining the economic and environmental benefits that come from CCS projects in the state and sets a dangerous precedent.