Together with 34 investors representing over $2 trillion, AP7 has called on US states to implement plans to reduce methane emissions from the US oil and gas sector.
The states with significant oil and gas production are Colorado, Louisiana, New Mexico, Pennsylvania, Texas, Utah and Wyoming. They are called upon to develop, implement and enforce plans that meet or exceed the Environmental Protection Agency’s (EPA) federal standard to significantly reduce methane emissions from the US oil and gas sector.
– As a long-term diversified investor, we work for policies and guidelines that deal with systemic risks such as climate change. Methane is a very powerful greenhouse gas and accounts for a large proportion of the emissions that cause global warming. Reducing methane leakage from the fossil industry is thus one of the most effective ways to achieve emission reductions in the near term, says Emma Henningsson, Responsible active ownership at AP7.
Addressing methane emissions is a cost-effective way to limit climate change. The oil and gas industry has readily available and cost-effective solutions to significantly reduce methane emissions. According to the International Energy Agency, around 50 percent of the sector’s methane emissions can be reduced at no net cost 1 . By taking action against methane emissions, states can promote responsible stewardship of natural resources, minimize financial risk, and help America’s oil and gas industry become cleaner.
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