Complete list of press releases

(MARRAKESH, Morocco – November 18, 2016)  Against a backdrop of concern resulting from the U.S. presidential election, countries at the first major UN climate talks since last year’s historic meeting in Paris laid out a basic roadmap for completing the technical work needed to implement the Paris Agreement, including next steps on the path to completing the agreement’s essential transparency framework. As negotiations on those issues began in earnest, countries in Marrakesh reached agreement on completing the infrastructure of the Paris Agreement by 2018. Alongside the negotiations, Canada and Mexico joined the United States (and Germany days earlier) in submitting long-term low greenhouse gas emission development strategies. 

“The Marrakesh talks represented the pivot from agreement to action. The political will and sense of urgency that helped ensure that the Paris Agreement entered into force in record time must now be reflected in meeting the roadmap laid out in Marrakesh, including conclusion of the necessary work to implement the agreement within two years. The continued momentum on climate action on view in Marrakesh will also give a lift to work now underway by the International Civil Aviation Organization and its Member States to develop guidelines needed for the timely implementation of the global market-based measure agreed in October.

“The most striking theme in Marrakesh was the continued commitment by countries around the world to moving forward on climate change despite the uncertainty that resulted from the election of Donald Trump. That continued commitment was clear in public statements and private assurances, in the constructive spirit of the negotiations, and in the actions of the several countries who formally joined the Paris Agreement in the last two weeks. The momentum that generated the Paris Agreement — and ensured that it entered into force in record time — can’t be derailed even by an earthquake as large as last week’s election.

“The next U.S. administration will decide whether to continue to lead that effort — or to sit on the sidelines and lag behind. That decision will have enormous implications for America’s standing in the world — and for the competitiveness of American businesses in the new clean energy economy. But either way, the direction the rest of the world is taking is clearer than ever. People around the globe are already seeing the impacts of climate change every day – from record-breaking heat to floods to costly storm damage — and they’re demanding a safer, cleaner, low-carbon future and the jobs and economic growth that future will entail.”

• Nathaniel Keohane, Vice President for Global Climate, Environmental Defense Fund

 (MARRAKESH, Morocco – November 16, 2016)  The United States announced its long-term climate strategy today at the COP 22 UN climate talks in Marrakesh, becoming the first country to submit its mid-century, long-term low greenhouse gas emission development strategy.

“The U.S. mid-century plan shows how the U.S. can deeply decarbonize its economy while capitalizing on the economic opportunities inherent in the transition to a low-carbon future. As the first country to submit its plan, the U.S. is demonstrating continued momentum for long-term climate action and signaling to the international community, including the private sector, that deep decarbonization is possible and practical over the coming decades.

“The long-term plan to address climate change, itself a long-term challenge, highlights how the U.S. can invest in infrastructure in a way that protects public health, promotes our national security, and generates economic opportunity. Meeting ambitious targets means action is needed in all sectors, and in all gases, so it’s notable that these long-term strategies cover all sources of emissions, including the land sector and powerful non-CO2 climate pollutants such as methane. The report also reflects that state and local governments, as well as businesses, play important roles in acting on climate change.”

• Nathaniel Keohane, Vice President, Environmental Defense Fund

 

(MARRAKESH, Morocco — November 16, 2016) In its annual World Energy Outlook released today, the International Energy Agency (IEA) reported that global energy-related CO2 emissions were flat in 2016, while fossil fuel subsidies declined and renewable energy increased. This builds on previous IEA reports that have found global energy-related CO2 emissions have been flat since 2013. The IEA estimates that 60% of new power generation in 2040 will be from renewables. According to the IEA’s estimate, these and other trends make it likely that many countries will meet the targets in their pledges made under the Paris climate agreement (known as nationally determined contributions, or “NDCs”). At the same time, the IEA projects that although achieving these targets will slow the rise in emissions, they are not sufficient to limit warming to two degrees above preindustrial levels, let alone the more ambitious goal of 1.5 degrees.

“The IEA’s World Energy Outlook makes clear that we are entering a period of energy transition. Energy efficiency is increasing, the cost of renewables is falling, and electric vehicles are gaining a toe-hold in major automotive markets around the world. And this is good news for our global climate.  For the second year in a row, energy-related carbon emissions remained flat even as the global economy grew. 

“At the same time, as the IEA report makes clear, these positive trends, by themselves, will not enable us to meet the important goals the world community established last year in Paris.  Solutions like well-designed carbon markets, greater investment in renewables, grid modernization, and  energy efficiency, and reductions in methane pollution from the oil and gas  industry, which contributes to 25% of the warming our planet is experiencing today, will be crucial to avoiding the worst effects of global climate change in our lifetime, and for future generations.”

• Nathaniel Keohane, Vice President, Global Climate, Environmental Defense Fund

Today, the National Fish and Wildlife Foundation (NFWF) approved a nearly $370 million investment in Gulf Coast restoration, with $245 million dedicated to five coastal restoration projects in Louisiana. The funding includes $193 million for the engineering and designing of two key restoration projects in Louisiana, the Mid-Barataria and Mid-Breton Sediment Diversions.

In response to this announcement, Restore the Mississippi River Delta – which includes Environmental Defense Fund, the National Wildlife Federation, National Audubon Society, Coalition to Restore Coastal Louisiana and Lake Pontchartrain Basin Foundation – released the following statement:

“Today’s announcement signals progress on two vitally important coastal restoration projects in Louisiana. The Mid-Barataria and Mid-Breton Sediment Diversions are key to reversing Louisiana’s land loss trend, by mimicking the natural land-building processes of the Mississippi River and carrying water and sediment into degraded wetlands to build new land.

“Diversions are a critical component of a comprehensive restoration and protection strategy for Louisiana. They can help revive Louisiana’s coastal wetlands – part of America’s largest delta – to a productive, functioning state, which provides important ecological and economic opportunities and benefits for people and wildlife.

“As the state of Louisiana engages in the 2017 Coastal Master Plan process, we must ensure the plan covers a suite of coastal restoration and protection projects, including these keystone diversions. We look forward to working with both the National Fish and Wildlife Foundation and the state of Louisiana to implement the Mid-Barataria and Mid-Breton Sediment Diversions on their current timeline of being ready for construction in 2021.”

(PITTSBURGH, PA – November 15, 2016) Environmental Defense Fund and Google Earth Outreach today released online maps showing the location and size of methane leaks discovered beneath Pittsburgh city streets using specially-equipped Google Street View mapping cars. The project is designed to showcase cutting-edge technologies to help operators prioritize costly pipeline repair and replacement efforts.

Peoples Gas, which owns the pipes, has been working to replace aging, leak-prone lines throughout its system, and invited EDF to bring the project to Pittsburgh. Leaks like the ones mapped by the team don’t usually pose an immediate safety threat, but leaking natural gas – which is mostly methane – has a powerful effect on the climate, packing 84 times the warming effect of carbon dioxide over a 20-year timeframe. Reducing methane leakage has also been a major focus of Gov. Tom Wolf’s efforts to ensure that Pennsylvania’s oil and gas sector is both cleaner and more competitive.

“Methane leaks are a serious issue in cities across the country, and for the oil and gas industry as a whole. It’s a waste of customer resources, a waste of national resources, and a serious environmental challenge,” said EDF President Fred Krupp. “Replacing old, leaking pipes is an important opportunity to cut greenhouse emissions quickly. New data like this can help get the job done in a way that’s better for ratepayers and the environment alike.”

The Pittsburgh maps are online at www.edf.org/climate/methanemaps.

A video on the project is at http://tinyurl.com/MethaneMaps.

Nearly half of Pittsburgh’s local gas lines are more than 50 years old. Street View mapping cars collected hundreds of thousands of readings over 320 miles of city streets between downtown, Oakland and Highland Park, chosen as a representative sample. Created from data taken over a period of months, the maps don’t paint a real-time picture. But they do reflect conditions facing Peoples Gas and dozens of other utilities, particularly in older cities.

“Peoples approached the EDF to begin to measure and monitor methane releases from our pipelines, and we thank them for lending their expertise on this project,” said Morgan O’Brien, president and CEO of Peoples. “Peoples has embarked on a 20-year, multibillion dollar pipeline modernization and methane mitigation program. We will hone the data, technology and methodology developed during this project to drive our improvement plan throughout our entire pipeline system.”     

Peoples is accelerating their pipe replacement effort, prioritizing the most populated areas in and around the Pittsburgh. They plan to continue working with EDF, along with researchers at Carnegie Mellon University, to expand methane monitoring efforts and maximize the resulting environmental benefits.

New Technology Brings New Benefits

The leak detection and measurement technology used in this project is newer and more sensitive than typically used by utilities generating far more information than most operators now collect. All utilities are required by law to monitor their lines and immediately fix leaks that pose a safety threat. But other leaks can and often do go undetected or unrepaired for long periods. Over time, the emissions add up.

“Google has a close connection and long history with the Pittsburgh community, and shares its dedication to science, technology, and the environment. We are excited that Google technology can play an important role here, to power the measurement, analysis, and communication of environmental information,” said Karin Tuxen-Bettman, Program Manager for Google Earth Outreach. “Making this information more accessible can make a meaningful difference in people’s lives.”

Utilities in New York and California are already publishing dynamic maps of their natural gas leaks. Sharing geographically-attributed leak data can help regulators and ratepayers track utilities’ leak management performance, and ensure cost-efficient emission reductions. In New Jersey, the state’s largest utility is using data collected by EDF and Google Earth Outreach to maximize the environmental benefits of a $900 million pipeline replacement program.

Next Steps in Pennsylvania

Pennsylvania has taken important steps to address the methane challenge across the oil and gas supply chain, putting it ahead of many other states. Earlier this year, Governor Tom Wolf proposed a multi-pronged strategy to reduce methane emissions from the state’s oil and gas sector, including best management practices to address pipeline leaks. But there’s more that can be done.

“Pennsylvania should require more frequent leak surveys using state-of-the-art technology across the oil and gas supply chain, not just to find leaks, but also to measure them. That data should also be more accessible to both regulators and the public,” Krupp said.

FOR IMMEDIATE RELEASE

(November 15, 2016) EDF supports the decision of the U.S. Army Corps of Engineers to re-engage with the Standing Rock Sioux Tribe on the construction of the Dakota Access Pipeline. The decision was reached after a two-month review by the Corps that determined additional discussion and analysis involving the Sioux Tribe is necessary before the project can move ahead on Corps land near Lake Oahe and the Missouri River.

“Consultation with Native American tribes on projects that affect their rights and interests should never be a bureaucratic ‘check the box’ exercise, and we are glad the Corps is taking a second look at this situation. We urge the Corps to make every effort to listen and act on what they hear. We urge all sides of this contentious issue to demonstrate mutual respect and adherence to principles of non-violence.”

-Dan Grossman, National Director of State Programs, Oil and Gas, Environmental Defense Fund

(November 15, 2016) Twenty one nations that are part of the UN-sponsored Climate and Clean Air Coalition (CCAC) recognized methane reductions as “the next big climate opportunity” and agreed to implement policies to minimize emissions of this powerful pollutant from their oil and gas sectors. The ministers representing Australia, Canada, Chad, Chile, Colombia, Cote d’Ivoire, Denmark, Finland, France, Ireland, Italy, Mexico, Netherlands, New Zealand, Nigeria, Norway, Philippines, Poland, Sweden, United Kingdom, United States made the announcement at the CCAC 8th High Level Assembly in conjunction with the twenty-second session of the Conference of the Parties (COP 22) in Marrakesh.

Statement from Environmental Defense Fund Vice President Mark Brownstein

“Eliminating flaring, venting, equipment malfunctions, and leaks of natural gas makes common sense. With today’s announcement, leading nations are declaring that good energy policy can be good environmental policy.

“Methane pollution is driving about 25 percent of the warming our planet is experiencing today, and reducing oil and gas methane emissions is the fastest, cheapest, most impactful way to address this. It will take a combination of government policy and industry action to fully realize this opportunity.”

·         Mark Brownstein, Vice President, Climate and Energy, Environmental Defense Fund

(WASHINGTON – November 15, 2016) The U.S. Department of the Interior’s Bureau of Land Management (BLM) today finalized new rules to reduce the amount of methane that oil and gas companies leak, vent, and flare on our nation’s public and tribal-owned lands. These new rules are the first national standards that target methane emissions from existing oil and gas sources – reducing waste and pollution. They also set an important precedent for continued action.

Statement from EDF President Fred Krupp

“Natural gas is a valuable American resource, but when wasted into the air it causes dangerous pollution. Reducing the amount of gas that oil and gas operators release will conserve an important domestic resource, improve air quality, lower asthma attacks, and slow climate change.

“The BLM rule has enjoyed bipartisan support in Congress and across the West. This rule shows that reducing waste and protecting taxpayers are issues that can and should cross party lines. In addition, communities across the West have spoken out in support of these rules. Advancements in drilling technology have made it possible for oil and gas companies to cost-effectively cut methane waste. BLM’s efforts will help ensure leading practice becomes the standard practice for any company operating on federal leases.

“BLM is right to address methane waste from existing oil and gas facilities – these actions build on important state and federal progress already underway. But the oil and gas industry remains the largest source of methane pollution in the country, and these efforts alone will not enable the U.S. to reach our goal of reducing 40-45% of these emissions over the next decade.”

·         Fred Krupp, President, Environmental Defense Fund

(NEW YORK, NY – November 3, 2016) Governor Andrew Cuomo announced this week the adoption of new regulations to reduce pollution from existing diesel generators and natural gas-fired engines, which are distributed, non-utility owned and operated power sources tied to the electric grid. This move follows the December 2015 proposal of Part 222 by the Department of Environmental Conservation (DEC), a set of standards to strengthen current regulations on emissions from these types of distributed generators, and conforms with the need for a cleaner, more decentralized electric system, envisioned by the state’s “Reforming the Energy Vision” (REV) initiative. 

 

“With REV and revisions to rates charged by central utilities to connect distributed sources to the grid, we can anticipate a significant growth in the number of these sources throughout the state. Governor Cuomo’s rule shows the state is making strides to tackle this head-on, and will subject many power sources to air quality, permit and registration requirements.”

 

“We look forward to working with New York State’s Public Service Commission to establish stringent nitrogen oxide emissions standards, improve air quality, and protect public health, particularly of vulnerable populations in New York City.”

 

• Jim Tripp, Senior Counsel, Environmental Defense Fund

(HARRISBURG, Pa. – October 28, 2016) Pennsylvania Gov. Tom Wolf this afternoon vetoed Senate Bill 562 – a piece of legislation that would have needlessly delayed the state’s ability to implement important public health and environmental protections.

“We fully support Gov. Wolf’s decision to veto SB 562. Pennsylvania already has one of the most lengthy and thorough regulatory review processes of any state in the nation – including outside review of proposed rules by an independent commission, review by the legislature and multiple opportunities for public comment. This bill was nothing more than an effort to prevent the Commonwealth from adopting common-sense protections. We applaud Governor Wolf for taking a stand and saying enough is enough.”

• Andrew Williams, Senior State Regulatory and Legislative Affairs Manager, EDF’s Oil and Gas Program

 

(Washington, D.C. – October 25, 2016) America’s fleet of delivery trucks and buses are now officially on their way to using less fuel, emitting less pollution, and saving more money.

The second-phase Clean Truck Standards were published in the Federal Register today, marking their official promulgation.

“The Clean Truck standards are vital for America’s efforts to address climate change, reduce oil use, and strengthen our economy,” said Jason Mathers, EDF’s Director of Supply Chain. “As of today, these common sense standards are off and rolling toward a safer, healthier clean energy future for all of us.”

The U.S. Environmental Protection Agency (EPA) and the Department of Transportation (DOT) announced the standards, formally known as the final second-phase climate pollution and fuel efficiency standards for heavy-duty vehicles, in August. They build on the success of the irst ever heavy-duty fuel economy and GHG program, which was finalized in 2011.

The Clean Truck standards apply to the freight trucks that transport the products we buy every day, as well as to buses and school buses, tractor-trailers, heavy-duty pickup trucks and vans, and garbage trucks. These heavy duty vehicles use almost 120 million gallons of fuel every day, and emit hundreds of millions of metric tons of climate pollution each year.

 EPA and DOT say that the new second-phase standards, which apply to vehicles beginning in model year 2021, will: 

• Reduce climate pollution by 1.1 billion tons
• Reduce American fuel use by two billion barrels of oil over the lifetime of the trucks
• Save truck owners $170 billion in fuel costs over the lifetime of their vehicles
• Result in $230 billion in societal benefits over the life of the program

The program will also benefit con­sumers by reducing the costs for shipping goods. The Consumer Federation of America found that rigorous fuel economy and greenhouse gas standards could save American households $250 annually in the near term and $400 annually by 2035.

A wide variety of truck and equipment manufacturers, fleets, policymakers, and clean air and human health advocates have spoken out in favor of the Clean Truck standards. You can read their comments here. You can also read more about the Clean Truck program on EDF’s website.

(COLUMBUS – October 24, 2016) — A new economic study finds a solid mix of energy efficiency and clean energy in Ohio will create jobs and grow the state’s economy, while saving customers money over time and generating health benefits. 

The comprehensive report, “Grounds for Optimism: Options for Empowering Ohio’s Energy Market,” investigates alternative pathways for Ohio’s renewable energy and energy efficiency standards. Produced by the energy market experts Greenlink Group in consultation with Runnerstone, a local energy consultancy well-versed in Ohio’s energy landscape, the report compares three forecasts of the state’s electricity market against a baseline of an indefinite extension of the current freeze on clean energy standards. The analysis highlights the financial and health benefits of each mix of resources. The Greenlink Group utilized an advanced system dynamics model to analyze the hour-by-hour characteristics of Ohio’s electricity demand and generation over the course of the next fifteen years. The Environmental Defense Fund (EDF) and The Nature Conservancy (TNC) commissioned the research and released the report today to help inform current policy discussions on the fate of Ohio’s clean energy standards.

Based on clear trends and achievable targets within the state’s growing clean energy industry, the report analyzes an Accelerated Efficiency scenario, an Intermediate Pathway that provides a balanced mix of renewables and efficiency, and an Expanded Renewables scenario. Each offers an achievable alternative to the 2008 standards and will result in significant economic benefits, while keeping Ohio on track to meet potential federal regulations. Those scenarios are compared against a baseline that models an indefinite extension of the freeze on Ohio’s renewable energy and energy efficiency standards, as has been proposed by some state lawmakers. All scenarios assume that the current setback rules for new wind development will be revised.

“Ohio policymakers are at a crossroads. They can create jobs, grow the economy, cut pollution, and save customers money by rebuilding the state’s renewable and efficiency policies, or they can continue to let Ohio fall behind other states in the clean energy boom,” said Dick Munson, Director, Midwest Clean Energy for Environmental Defense Fund. “Fortunately, this study shows there are multiple potential paths forward, all of which will greatly benefit Ohioans.”

The study demonstrates that policymakers have a range of attractive options for Ohio to participate in the clean energy economy, while providing jobs and ensuring cleaner air for all Ohioans. 

“We were asked to consider Ohio’s future electricity needs and determine the true economic implications of various strategies,” said Dr. Matt Cox, chief operating officer and founder of The Greenlink Group, Inc. “Our analysis attempts to get to the ‘true costs and benefits’ of these policies, such as the impact on utilities and the healthcare benefits from less pollution.” 

According to the three scenarios, the renewable energy and energy efficiency industries are expected to:

• Create between 82,300 and 136,000 new jobs in Ohio, with the wind industry serving as one of the largest contributors.
• Enhance Ohio’s GDP by $6.7 billion to $10.7 billion by 2030.
• Provide between $28.8 million and $50.9 million in savings for Ohio electricity customers in 2030 alone.
• Deliver approximately $800 million in near-term health-care savings annually and up to $3 billion per year by 2030.

For example, the Expanded Renewables scenario relies on greater growth in renewable energy (e.g. wind and solar) and features the greatest increases in jobs and payroll growth, largely due to manufacturing jobs related to wind power industry. In addition, the Expanded Renewables pathway will attract private market investment that will limit financial impact on ratepayers up front and in the long-term.

The Accelerated Efficiency scenario also creates jobs and payroll growth, and would place Ohio in line with efficiency targets other states have already adopted and, in most cases, achieved.

In addition to the comparative forecasts, the report calls for five market-focused reforms that would advance energy innovation and investment within Ohio, including revisions to the wind setback rule that has prevented further wind development in the state.

“Reinvigorating Ohio’s renewable and efficiency policies will allow the state to maintain flexibility while building a cleaner, healthier energy system,” said Josh Knights, executive director of The Nature Conservancy in Ohio.

“Ohio was once a clean energy leader,” Knights said. “This report provides lawmakers with options for getting the Buckeye State back on track, so Ohioans can have a cleaner, more affordable energy system.”

All three scenarios in the study positively impact Ohio’s economy, create jobs, expand the state’s GDP and payroll, and lower electricity costs to customers over the long-term. EDF and TNC recommend that state lawmakers carefully review the three scenarios and enact standards that will attract investment in Ohio and position the state as a leader in energy innovation.

The full report can be downloaded here.

(New Orleans – Oct. 20, 2016) Today, Louisiana’s Coastal Protection and Restoration Authority (CPRA), along with the other state and federal agencies comprising the Louisiana Natural Resource Damage Assessment (NRDA) Trustee Implementation Group, announced the release of its first Draft Restoration Plan. This plan proposes $22.3 million in restoration projects in Louisiana to address environmental damages resulting from the 2010 Gulf oil disaster and lays out a vision for future investments. It is the first natural resource restoration plan to be released since the NRDA settlement was approved in April 2016.

In response to this announcement on the NRDA draft plan, Restore the Mississippi River Delta – which includes Environmental Defense Fund, the National Wildlife Federation, National Audubon Society, Coalition to Restore Coastal Louisiana and Lake Pontchartrain Basin Foundation – released the following statement:

“Six years after the Gulf oil disaster wreaked havoc on our coast and ecosystems, today’s release of the NRDA Trustees’ first draft restoration plan is an important step on the path toward repairing this damage and restoring our coast. The plan wisely recognizes sediment diversions as a crucial cornerstone to restoring coastal Louisiana, and we’re encouraged to see the Trustees acknowledge this fact by setting the stage for funding construction of sediment diversions in the future. We also applaud the Trustees for funding projects now that are included in CPRA’s Coastal Master Plan or address specific resources injured by the Gulf oil disaster.

“With funding from the historic BP settlement, Louisiana has a once-in-a-lifetime opportunity to address systemic issues plaguing its coast and ecosystems, worsened by the Gulf oil disaster. This plan prioritizes leveraging resources, coordination and transparency across agencies and state entities, including the RESTORE Council, National Fish & Wildlife Foundation and the state of Louisiana, to ensure that these funds do as much good as possible – and quickly. That is a win for the people, wildlife and industries of Louisiana.”

Washington, D.C. and London, October 20, 2016 - Oil and gas industry investors face increasing financial, reputational and regulatory risks from widespread methane emissions. An Investor’s Guide to Methane: Engaging with Oil and Gas Companies to Manage a Rising Risk, released today by Environmental Defense Fund (EDF) and the Principles for Responsible Investment (PRI), is a first-of-its kind guide to help investors manage methane risk through company engagement.

Methane – the primary component of natural gas and a climate pollutant 84 times more powerful than carbon dioxide over a 20-year period – is responsible for a quarter of the warming happening today. The oil and gas sector is the largest industrial source of methane emissions globally, costing an estimated $30 billion in lost product each year. While some companies are beginning to engage more deeply, an EDF report found that as of early 2016, none of the 65 leading upstream and midstream oil and gas companies operating in the United States disclosed methane reduction targets, and less than a third disclosed baseline emissions information via accessible, investor-facing data sources.

This April, global investors backed by $3.6 trillion in assets, highlighted methane emissions as a growing investment risk and supported the United States and Canada adopting methane emission reduction targets of up to 45% by 2025. Investor support from Europe, the largest natural gas importer, totaled $2.1 trillion dollars.

“Investors were stunned by the widespread underreporting of methane emissions management uncovered in EDF’s ground-breaking Rising Risk report, and asked for a practical guide to engage oil and gas companies. This guide can help investors manage methane risks and keep more saleable product in the pipeline - a win-win for investors, companies, and communities,” said lead author Sean Wright, senior manager at EDF.

“The business case for methane risk mitigation is well-defined. With growing global action to slow climate change and new regulatory approaches, companies are increasingly exposed to financial, regulatory and reputational risks on methane. Companies cannot turn a blind-eye to disclosure and reduction targets,” said Gemma James, manager of environmental issues at PRI.

“Many oil and gas companies have been rebalancing their portfolios toward gas, and industry projections continue to stress rising gas demand into the coming decades. However, significant efforts in reducing methane emissions are required if gas were to have a beneficial role in replacing coal and lowering the carbon intensity of the power generation mix in the medium-term,” said Matthias Beer, Associate Director of Governance and Sustainable Investment at BMO Global Asset Management.

Political and market momentum to address climate change is increasing. As countries look for pathways to fulfill their international greenhouse gas reduction commitments stemming from the historic Paris climate accord in December 2015, reducing methane emissions is a quick and cost-effective lever to reduce the rate of warming now.

Washington, D.C. and London, October 20, 2016 - Oil and gas industry investors face increasing financial, reputational and regulatory risks from widespread methane emissions. An Investor’s Guide to Methane: Engaging with Oil and Gas Companies to Manage a Rising Risk, released today by Environmental Defense Fund (EDF) and the Principles for Responsible Investment (PRI), is a first-of-its kind guide to help investors manage methane risk through company engagement.

Methane – the primary component of natural gas and a climate pollutant 84 times more powerful than carbon dioxide over a 20-year period – is responsible for a quarter of the warming happening today. The oil and gas sector is the largest industrial source of methane emissions globally, costing an estimated $30 billion in lost product each year. While some companies are beginning to engage more deeply, an EDF report found that as of early 2016, none of the 65 leading upstream and midstream oil and gas companies operating in the United States disclosed methane reduction targets, and less than a third disclosed baseline emissions information via accessible, investor-facing data sources.

This April, global investors backed by $3.6 trillion in assets highlighted methane emissions as a growing investment risk and supported the United States and Canada adopting methane emission reduction targets of up to 45% by 2025. Investor support from Europe, the largest natural gas importer, totaled $2.1 trillion dollars.

“Investors were stunned by the widespread underreporting of methane emissions management uncovered in EDF’s ground-breaking Rising Risk report, and asked for a practical guide to engage oil and gas companies. This guide can help investors manage methane risks and keep more saleable product in the pipeline - a win-win for investors, companies, and communities,” said lead author Sean Wright, senior manager at EDF.

“The evidence is clear that methane emissions are an important financial and environmental risk in the oil and gas industry,” said Jonas Kron, Senior Vice President at Trillium Asset Management. “This guide provides investors with an extremely valuable tool to understand these risks. But even more importantly, it gives them the ability to engage with senior management in constructive dialogue to identify concrete actions to improve methane performance. Oil and gas executives should expect to hear from their shareholders in short order.”

“The business case for methane risk mitigation is well-defined. With growing global action to slow climate change and new regulatory approaches, companies are increasingly exposed to financial, regulatory and reputational risks on methane. Companies cannot turn a blind-eye to disclosure and reduction targets,” said Gemma James, manager of environmental issues at PRI.

Political and market momentum to address climate change is increasing. As countries look for pathways to fulfill their international greenhouse gas reduction commitments stemming from the historic Paris climate accord in December 2015, reducing methane emissions is a quick and cost-effective lever to reduce the rate of warming now.