A Careful Pause in a Defining Moment for Louisiana’s Energy Future

Governor Jeff Landry’s recent executive order on carbon capture and storage (CCS) marks an important moment in Louisiana’s approach to balancing economic ambition with environmental stewardship. Executive Order No. JML 25-119, which places a conditional pause on new Class VI injection well permit applications, is not a rejection of carbon capture — it is a call for reflection. The Governor has framed the pause as a temporary measure to strengthen oversight, improve communication with local communities, and ensure the long-term safety and credibility of a technology that will define Louisiana’s industrial future.

In many ways, this move reflects the reality of governing in a state where the energy economy and the environment are deeply intertwined. Louisiana’s industrial sector has committed tens of billions of dollars to projects that depend on CCS. At the same time, the public has raised reasonable questions about groundwater safety, property rights, and long-term monitoring. The Governor’s executive order acknowledges both truths — that CCS is vital to economic growth, but that growth must be built on a foundation of public confidence.

That nuance has not gone unnoticed. The Louisiana Chemical Association (LCA), representing many of the state’s largest industrial employers, expressed appreciation for the Governor’s emphasis on safety and community engagement, while also urging that the moratorium be carefully managed to avoid unintended consequences.

“We appreciate Governor Landry’s focus on public safety, environmental stewardship, and economic growth,” said David Cresson, LCA President and CEO. “We share his commitment to responsible industrial development and community engagement… That is why we are concerned that a conditional moratorium on new Class VI permit applications sends the wrong message to the market at a pivotal moment for Louisiana’s economy.”

The Louisiana Association of Business and Industry (LABI) echoed that sentiment, noting that Louisiana’s primacy approval — the authority to issue its own Class VI permits — was hard-won and should remain a symbol of confidence in the state’s regulatory capability. “While this appears to be a shared goal of the Landry administration, today’s executive order on carbon capture and sequestration sends the wrong message,” said LABI President and CEO Will Green. “The order risks ceding Louisiana’s competitive advantage to neighboring states eager to move forward with CCS investments.”

Still, many in the policy and environmental community see the Governor’s decision as a responsible act of leadership rather than hesitation. Louisiana’s new primacy status gives it unique authority to regulate and permit carbon storage sites. That also makes the state directly accountable for ensuring projects meet the highest standards of safety, transparency, and environmental protection. By taking a short pause now, the administration aims to review best practices, address local concerns, and ensure the permitting framework remains as strong as the projects it supports.

This is, in effect, a strategic reset — a chance to refine rather than retreat. The Governor’s team has indicated that the moratorium will be conditional and temporary, allowing active projects and reviews to continue while the state clarifies procedures around monitoring, emergency response, and public notice. For companies making multi-billion-dollar siting decisions, the message is that Louisiana intends to lead this emerging sector the right way — not at the expense of local communities, but in partnership with them.

Such a recalibration may ultimately strengthen Louisiana’s standing. In a fast-changing global energy market, predictability and trust are just as valuable as speed. The state’s ability to demonstrate that it can manage carbon storage responsibly — with both efficiency and accountability — will determine whether it can sustain investor confidence over the long term.

As Cresson noted, “Louisiana should proudly lead the nation in safe, responsible industrial decarbonization.” That leadership, in the Governor’s view, requires both innovation and caution — ensuring that economic growth remains aligned with environmental responsibility and public confidence.

Louisiana’s story has always been one of balance: between land and water, industry and environment, progress and preservation. Governor Landry’s executive order invites a conversation about how to achieve that balance in a new era of carbon management. If done well, it could reaffirm Louisiana’s reputation not just as a place that builds big projects, but as a state that builds them wisely