Submitted by: Ceres
Posted: May 12, 2016 – 03:44 PM EST
BOSTON, Mass., May 12 /CSRwire/ - As the clean energy transition continues to pick up steam globally in the wake of the Paris Climate Agreement, the nonprofit sustainability Ceres and major investors welcomed today’s commitment from the U.S. Environmental Protection Agency to significantly cut methane emissions from the oil and gas industry.
The oil and gas sector is the largest source of methane emissions in the U.S., and methane is responsible for as much as 25 percent of global warming pollution.
“Investors and companies are concerned that methane emissions pose a serious threat to climate stability, accelerating the rate of warming in the near term and threatening infrastructure and economic harm,” said Andrew Logan, director of the oil and gas program at Ceres. “Without strong methane regulations like we’re seeing today, natural gas extraction is more a problem rather than a solution to a low-carbon transition.”
"We welcome today’s final rule on the new and modified methane sources and see it as a critical step in addressing this overhang for the oil and gas industry,” said Jonas Kron, senior vice president at Trillium Asset Management. “Methane emissions pose significant risks for investors that warrants this EPA action and future rules for existing oil and gas infrastructure and operations.”
Methane emissions from the oil and gas sector have been a long-standing concern of investors. Just last month investors representing nearly $4 trillion in assets spoke out in support last month for strong action by the U.S. and Canada to reduce methane emissions 40 to 45 percent by 2025, which EPA’s new action will help support.
“The rule announced today is a significant down payment on the administration’s commitment to reduce methane emissions from the oil sector,” added Logan. “Moving forward EPA should redouble its efforts to develop standards for existing methane sources. These efforts will help the U.S. meet its global greenhouse gas commitments and confront climate change, while also promoting economic growth and leveling the economic playing field.”
Ceres is a nonprofit organization mobilizing many of the world’s largest companies and investors to take stronger action on climate change, water scarcity and other sustainability challenges. Ceres directs the Investor Network on Climate Risk (INCR), a network of more than 120 institutional investors with collective assets totaling more than $14 trillion. Ceres also engages with 100-plus companies, many of them Fortune 500 firms, committed to sustainable business practices and the urgency for stronger climate and clean energy policies. For more information, visit www.ceres.org or follow on Twitter @CeresNews.
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