Investor-led coalition urges US states to meet federal methane standards

November 19th, 2024

A coalition of 35 institutional investors representing more than $2 trillion in assets has called on US states to act in line with federal methane standards to address climate-related risks.

The signatories urged states to develop, implement and enforce plans that meet or exceed the Environmental Protection Agency’s federal methane stand to substantially reduce methane emissions from the US oil and gas sector.

In a letter, the investor-led group said addressing methane emissions is one of the fastest and most cost-effective ways of limiting climate change, noting that the oil and gas industry already has readily available, affordable solutions to significantly cut pollution.

It highlighted the importance of mitigating climate risks, not only to protect the economy and financial system, but also to address the legal, reputational and market risks faced by traditional energy companies and their investors.

The letter said: “As energy customers, investors and regulators around the world increasingly demand cleaner energy, failure to cut methane emissions could damage American companies’ competitive access to global markets at a time when exports play an important role in the U.S. economy and to the energy industry.”

In addition to reducing emissions and their associated risks, investing in methane detection and mitigation enhances energy security and creates jobs, which stimulates local economies.

The methane mitigation industry is a multi-million-dollar industry that employs thousands of people across the US and is positioned for growth as strong methane regulations are implemented.

The group added that while voluntary efforts from leading companies, including those participating in the Oil and Gas Methane Partnership 2.0, have made a difference, comprehensive and effective regulations are essential.

Such regulations are necessary to build stakeholder confidence, provide long-term certainty and help companies and investors manage climate-related risks and opportunities.