By Scott DiSavino

(Reuters) – The New York City Council will vote Wednesday on whether to ban new building constructions. This follows the lead of dozens other small American cities that are trying to move away from fossil fuels and towards cleaner energy sources.

If the law passes, all new structures in the 8.8 million-strong city – the largest in America – will need to heat or cook with electricity.

Near-term carbon emission reductions in Big Apple (NASDAQ) will be minimal with the new law. Older buildings won’t be affected by the legislation, while new structures that use fossil fuel electricity will. The state intends to eliminate fossil fuels as a source of power in the long-term.

New buildings less than seven stories tall at 2023 would be subject to the law, and higher-rise buildings in 2027. San Jose, California has been the US’s most populous city to ban natural gas new building constructions.

U.S. carbon dioxide emissions from fossil fuels declined to their lowest point since 1983 in 2020. They are forecast to climb about 7% by 2021, as power companies burned more coal to create electricity because of a sharp rise in the cost of natural gas.

New York’s recent move may mean that buildings that heat with electricity will be more expensive than homes using natural gas. The average Northeast household will pay about $1,538 for electricity to heat their homes this winter. Natural gas is around $865.

Analysts at energy consulting EBW Analytics Group stated that using gas to heat buildings and produce power is more efficient than heating them directly.

According to federal energy data, more than 40% of New York’s power comes from fossil fuels. Another 29% is from nuclear power, and 22% are from hydropower.

New York State passed legislation in 2019 that requires all electricity from renewable, clean and carbon-free energy sources by 2040. This will help to reduce the power sector’s emissions of carbon dioxide in New York State.

According to RMI (environmental advocacy group), nearly 40% of city’s greenhouse gas emissions are caused by burning fuels in space heating and water heating.

“Burning fracked gas to power buildings is a main driver of climate change and air pollution, which leads to catastrophic climate events and the premature death of an estimated one thousand New York City residents per year,” Food & Water Watch and other environmental groups said in a statement.

Opposition to the proposal was voiced by the oil and gas industry. They claimed that using natural gas for space heating could lower customer costs and decrease emissions, especially when it is combined with hydrogen or renewable natural gas, such as from landfills.

As part of city council hearings, the American Petroleum Institute, an oil lobby group said that “Energy efficient, low-carbon buildings” could be powered using a unique combination of natural and renewable energy.

The European Union, which is currently considering whether gas-fired power stations can be considered a green investment to meet climate goals, has been facing energy shortages in Europe.