Complete list of press releases

(WASHINGTON– Nov.17) More studies and data are needed to shape the regulatory standards for farming seafood offshore in United States federal waters, according to a new report published in the scientific journal Marine Policy. 

The report, Toward an environmentally responsible offshore aquaculture industry in the United States: Ecological risks, remedies, and knowledge gaps, comes as interest in offshore aquaculture in the U.S. continues to grow and U.S. regulators consider what the appropriate framework for developing the industry should be. 

“We aren’t starting from scratch,” said Rod Fujita, lead author of the report and Senior Scientist at Environmental Defense Fund (EDF). “There are many lessons from nearshore aquaculture practices and existing offshore pilot projects that we can apply to offshore aquaculture. But there are also many unanswered questions, so more research is needed to create a regulatory framework that safeguards the environment based on science, while allowing the offshore aquaculture industry to develop in the U.S.”

The report identifies key gaps in knowledge concerning the potential risks of offshore aquaculture and potential mitigation strategies, including:

• Siting Optimizations: What are the best approaches for choosing sites to optimize production and environmental performance?
• Infrastructure and Marine Wildlife: How can the risk of damage and harmful interactions with wildlife be mitigated?
• Disease and Escape Prevention: What siting criteria would minimize the risk of disease and pathogen outbreaks? Will some types of infrastructure pose lower risks of escape than others? 
• Stocking: What data are necessary to determine optimal stocking densities for specific species in certain locations? How should optimal stocking be defined?
• Feed: How do respective environmental consequences of current and future feed ingredients compare? How can the environmental footprint of feeds be reduced?
• Metabolic Waste: What monitoring methods and metrics should be used to avoid adverse impacts of metabolic waste around offshore sites?

“Offshore aquaculture in the U.S. presents an exciting opportunity for more homegrown seafood but, like any ocean use, it must balance industry development with the conservation of marine ecosystems and wildlife,” said co-author Matthew Thompson, Aquaculture Programs Manager at the Anderson Cabot Center for Ocean Life. “To achieve this balance, several outstanding challenges require innovative solutions which we hope this work will inspire.” 

The report is a springboard for next steps in shaping a regulatory framework for a science-based approach to aquaculture. 

Halley Froehlich, report co-author and Assistant Professor for Marine Aquaculture and Fisheries Science at the University of California, Santa Barbara (USCB) said, "Offshore aquaculture is growing in interest and application, so highlighting its potential, risks, and research needs is critical to help chart a better path forward."

The report was a collaborative effort by coauthors, Rod Fujita, EDF; P. Brittingham, School of Earth, Energy, and Environmental Sciences at Stanford University; L. Cao, School of Oceanography at Shanghai Jiao Tong University; H.E. Froehlich, UCSB; M. Thompson, Anderson Cabot Center for Ocean Life, New England Aquarium; and T.M. Voorhees, Monterey Bay Aquarium and Cargill Aqua Nutrition. 

A new report published today by Environmental Defense Fund focused on non-operated joint ventures (NOJVs) in the oil and gas industry finds that supermajors’ climate targets to reduce methane emissions only apply to assets they operate directly. Emissions from assets in which they have no operating interest are largely unmanaged and unknown in underregulated regions of the world. The report focuses primarily on NOJV arrangements where a supermajor partners with a national oil company (NOC), which are not subject to the regulatory, financial and public pressures that apply to supermajors.

NOJVs are central to how the oil and gas industry does business, allowing supermajors a share in valuable assets controlled by other companies – often state-owned entities – in exchange for the supermajor’s access to capital and technical expertise in exploration and production. The complicated nature of these governance structures makes complete emissions accounting nearly impossible, obscuring companies’ climate risk.

“Although supermajors have set targets to reduce their methane and flaring emissions, these targets only apply to assets they operate directly, which amounts to 50% of their total production portfolios,” said Felicia Douglas, energy manager at EDF. “Their remaining production is part of non-operated joint ventures, leaving a significant opportunity on the table for supermajors to raise the bar on methane action and scale emissions reductions quickly.”

Supermajors play a technical role in joint ventures with NOCs to develop oil and gas fields. They have an opportunity to lend technical expertise in NOJV partnerships to design, execute and evaluate an emissions strategy for each asset. Helping NOCs credibly demonstrate methane emissions reductions will significantly scale global methane reductions, and mitigate legal, regulatory, and reputational risks of all partners involved in an operation.

Regions where non-operated production is highest are also exposed to high levels of flaring, with the Middle East and Africa accounting for 45% of supermajor non-operated production volume and 50% of total global flaring. If supermajors extended their emissions reduction commitments to NOJVs, the percentage of international oil and gas production bound to climate targets would increase from 11% to 30% of production.

Addressing emissions from NOJVs is not only critical to reducing the industry’s methane footprint, but it will also help address the problem of transferred emissions during the M&A process by ensuring that climate stewardship is embedded across all assets and can withstand changes in ownership.

“Supermajors reap serious financial rewards from their non-operated assets, with little to no scrutiny on the associated emissions from these ventures,” said Andrew Baxter, director of energy transition at EDF. “The world’s largest oil and gas companies have a shared responsibility to extend their technical know-how and climate mitigation resources to state-owned companies to help them rapidly scale the reduction of greenhouse gas emissions across all of the world’s oil and gas assets, not just a small fraction.” 

A new report published today by Environmental Defense Fund focused on non-operated joint ventures (NOJVs) in the oil and gas industry finds that supermajors’ climate targets to reduce methane emissions only apply to assets they operate directly. Emissions from assets in which they have no operating interest are largely unmanaged and unknown in underregulated regions of the world. The report focuses primarily on NOJV arrangements where a supermajor partners with a national oil company (NOC), which are not subject to the regulatory, financial and public pressures that apply to supermajors.

NOJVs are central to how the oil and gas industry does business, allowing supermajors a share in valuable assets controlled by other companies – often state-owned entities – in exchange for the supermajor’s access to capital and technical expertise in exploration and production. The complicated nature of these governance structures makes complete emissions accounting nearly impossible, obscuring companies’ climate risk.

“Although supermajors have set targets to reduce their methane and flaring emissions, these targets only apply to assets they operate directly, which amounts to 50% of their total production portfolios,” said Felicia Douglas, energy manager at EDF. “Their remaining production is part of non-operated joint ventures, leaving a significant opportunity on the table for supermajors to raise the bar on methane action and scale emissions reductions quickly.”

Supermajors play a technical role in joint ventures with NOCs to develop oil and gas fields. They have an opportunity to lend technical expertise in NOJV partnerships to design, execute and evaluate an emissions strategy for each asset. Helping NOCs credibly demonstrate methane emissions reductions will significantly scale global methane reductions, and mitigate legal, regulatory, and reputational risks of all partners involved in an operation.

Regions where non-operated production is highest are also exposed to high levels of flaring, with the Middle East and Africa accounting for 45% of supermajor non-operated production volume and 50% of total global flaring. If supermajors extended their emissions reduction commitments to NOJVs, the percentage of international oil and gas production bound to climate targets would increase from 11% to 30% of production.

Addressing emissions from NOJVs is not only critical to reducing the industry’s methane footprint, but it will also help address the problem of transferred emissions during the M&A process by ensuring that climate stewardship is embedded across all assets and can withstand changes in ownership.

“Supermajors reap serious financial rewards from their non-operated assets, with little to no scrutiny on the associated emissions from these ventures,” said Andrew Baxter, director of energy transition at EDF. “The world’s largest oil and gas companies have a shared responsibility to extend their technical know-how and climate mitigation resources to state-owned companies to help them rapidly scale the reduction of greenhouse gas emissions across all of the world’s oil and gas assets, not just a small fraction.” 

(Washington, DC – November 16, 2022) Today, the U.S. Environmental Protection Agency (EPA) released a supplemental proposed rule “Fees for the Administration of the Toxics Substances Control Act (TSCA).” Under TSCA, EPA is required to set fees such that the agency recoups 25% of its program costs from industry. Today’s rule modifies and supplements a 2021 proposal released under the previous administration.  

“EPA’s TSCA program is severely underfunded, hindering EPA’s ability to faithfully implement the law and protect public health. Today’s proposal from EPA to considerably increase TSCA fees is a critical – and overdue – step to address years of lowballing industry’s share of the cost to implement TSCA. However, industry fees alone, which offset just a fraction of the cost of implementing the law, are not sufficient. Congress must also provide appropriate funds to ensure EPA is fully resourced to carry out its mission under TSCA.” 

• Lindsay McCormick, Sr. Manager, Safer Chemicals  

VANCOUVER –  Newly released footage taken at oil and gas sites in Alberta and Saskatchewan reveal that methane is being intentionally and unintentionally emitted from Canada’s oil and gas-producing regions. 

Methane is a potent greenhouse gas that is fueling the climate crisis. 

The footage — commissioned by Clean Air Task Force and The David Suzuki Foundation —  was taken over a six-day period in July using a special infrared camera. It reveals methane escaping undetected from tanks, well pads, flare stacks and other oil and gas infrastructure. The field team that captured the footage visited 128 sites and documented methane emissions at every site.

The oil and gas industry is a major methane emitter and Canada has committed to reducing at least 75 per cent of oil and gas methane emissions by 2030. The Canadian government recently announced a series of improvements it will make to the national environmental regulations  to help solve the problem, including:  

• Require more frequent leak inspections
• Restrict flaring
• Replace high-emitting equipment with zero-emission alternatives
• Stronger enforcement of existing regulations
• Develop an advanced, more comprehensive emissions reporting framework.

Quotes:

“These images and videos of methane escaping from oil and gas equipment in Alberta and Saskatchewan show that the industry has a big emissions problem. Claims by the provinces and industry that they’re making great progress on tackling methane ring hollow when the potent gas was detected almost everywhere. This shows the urgency of translating the federal methane framework announced at COP27 into legally binding regulations.”

• Tom Green, Senior Climate Policy Adviser, David Suzuki Foundation

“We’re strongly encouraged by Canada's newly proposed framework for reducing methane. Cementing best practices like requiring more frequent leak inspections and accurate emissions reporting can help prevent methane pollution. Canada must follow through with strong regulations that standardize best practices for all oil and gas operations.” 

• Ari Pottens, Senior Campaign Manager for Canada, Environmental Defense Fund

“With the newly planned framework for regulating and reducing methane emissions in the oil and gas sector, Canada has positioned itself as a frontrunner for the most ambitious policy in the world. Reports of methane pollution in Alberta and Saskatchewan illustrate that much work remains. Developing comprehensive regulations will be critical to ensuring Canada’s emissions reductions match its ambition.”

• James Turitto, Campaign Manager for Methane Pollution Prevention, Clean Air Task Force

“For the last 6 years, California State Assembly Speaker Anthony Rendon has been a notable champion of ambitious and equitable climate action that will protect communities around the state. Under his collaborative and thoughtful leadership in the Assembly, California has passed some of the most significant clean energy, groundwater conservation and environmental equity laws in the country.

“Most recently, Speaker Rendon ensured that California’s slate of climate legislation adopted at the end of the 2021-2022 legislative session elevated the state’s climate fight and created important protections for local communities on the frontlines of climate change. At the same time, Speaker Rendon led the chamber to pass a state budget including record climate investments that support environmental equity, build a clean economy and protect public health. Environmental Defense Fund is grateful for Speaker Rendon’s leadership and looks forward to building on these successes with him in the coming year, and with Speaker-Designee Robert Rivas thereafter.

“Speaker-Designee Rivas has demonstrated a strong and long-lasting commitment to climate action that addresses the needs of a wide variety of communities – notably with his vision for multi-benefit land repurposing to support groundwater sustainability and ensure a resilient water and land future for rural communities and growers. This multifaceted approach to finding solutions that support resilient and thriving communities will undoubtedly be an asset to Speaker-Designee Rivas in his new role.

“Environmental Defense Fund is looking forward to continuing the chamber’s legacy of ambitious climate action under Speaker-Designee Rivas’s leadership, and we warmly congratulate him on his selection.”

• Katelyn Roedner Sutter, California State Director, Environmental Defense Fund

Sharm El-Sheikh, Egypt--During a side event at the United Nations climate talks, government representatives from Chile and New Zealand expressed interest in and support for exploring the creation of a Climate Action Team agreement between the two countries. 

A ‘Climate Action Team’ is a cooperative mechanism within Article 6.2. of the Paris Agreement, made up of one 'host' country and one or more 'partner' countries. Under a multi‐year agreement, the partners will support the host country to accelerate climate action and decarbonization efforts beyond its own national climate goals (Nationally Determined Contribution, or NDC) and create social benefits. Partners are rewarded by claiming credits for the emission reductions generated through the Climate Action Team.

The event featured a panel discussion exploring the possibility of the creation of the CAT between Chile and New Zealand, the benefits it could provide to both countries, and the challenges and next steps to begin an exploration process.

“Chile is open to initiatives under Article 6 of the Paris Agreement, such as the one proposed by Climate Action Teams. But before signing any commitment, it is essential to generate a technical exploratory process with a potential partner countries to find out what this means in practice. It would help us a lot to have the resources to generate the relevant information and analysis to make a well-informed decision,” said Rodrigo Arriagada, Head of the Information and Environmental Economics, Ministry of the Environment of Chile.

“The Climate Action Teams model has many virtues, such as eliminating project-based additionality and reducing transaction cost,” said Santiago Lorenzo, Head of the Climate Change Unit of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). “I see ECLAC's support as very viable for an exploratory process with Chile and other countries in the region that join this initiative.”

“Article 6 cooperation is key to scaling up ambition in this critical decade,” said Kay Harrison, Climate Ambassador for New Zealand. “New Zealand looks forward to exploring innovative cooperation with an ambitious partner like Chile.”

The side event also included presentations on three different models of large-scale mechanisms to finance climate action and just energy transitions in developing countries: the Just Energy Transition Partnership (JETP), the US-led Energy Transition Accelerator, and the Lowering Emissions by Accelerating Forest finance (LEAF) Coalition. It featured speakers from the governments of Chile, New Zealand and the United States; Environmental Defense Fund (EDF); and the International Emissions Trading Association (IETA).

“To combat the climate crisis, we have to move with scale, speed and integrity. Mechanisms like the newly-announced, US-led Energy Transition Accelerator and Climate Action Teams have potential to leverage their large scale to make major strides forward because of their ability to reduce emissions in high-integrity, easily-verifiable ways,” said Suzi Kerr, Chief Economist at the Environmental Defense Fund. “These are models that we have to start designing and implementing so that countries can get the support needed to raise their climate ambition.”

SHARM EL SHEIKH, EGYPT – Citing the overlapping challenges of climate, energy poverty, food security, President Joe Biden today unveiled a suite of actions to support developing countries adapt and build resilience to climate impacts, recommit to global efforts to reduce methane emissions, and create climate-smart food systems.  

METHANE

A key announcement included a new framework involving the U.S., the European Union, Japan, Canada, Norway, Singapore and the United Kingdom under which buyers and sellers of internationally-traded natural gas and other fuels will collaborate to minimize greenhouse gases which include the wasteful emissions of methane across oil and gas supply chains. 

Following on last year’s Global Methane Pledge, the new Joint Declaration seeks to create a market for low methane-intensity natural gas by channeling more and better emissions data into concrete policies, commercial agreements, and emission mitigation plans.  

"Recent events show that energy security and climate security are inextricably linked. Countries are staying focused on methane not despite the energy crisis, but because of it. Rather than retreat from commitments to reduce methane waste and pollution, they’re moving decisively forward on goals they set at last year’s COP.  

Methane pollution is pervasive throughout the fossil fuel sector, wasting at least 80 million tons of natural gas a year. Keeping that gas out of the atmosphere is the best, fastest thing we can do to protect the climate while helping to ensure that Europe and the world have the energy needed to manage the immediate geopolitical crisis, even as we accelerate the decarbonization of our energy systems.  

The declaration brings energy exporters and energy importers into alignment around transparent measurement and reporting standards that make is easier for both sides to reduce wasteful, unnecessary pollution. By using resources already in place through the Oil & Gas Methane Partnership and the International Methane Emissions Observatory, participants will achieve results quicker and with greater certainty."

• Fred Krupp, President, Environmental Defense Fund 

ADAPTATION

Other commitments included a pledge to double its contribution to the Adaptation Fund to $100 million and provide over $150 million to accelerate his Emergency Plan for Adaptation and Resilience (PREPARE)’s work across the continent, in support of the Adaptation in Africa initiative. 

"These commitments to support adaptation and resilience to a changing climate are a sign that the United States is showing up in response to the asks of developing countries."

• Angela Churie Kallhauge, Executive Vice President of Impact, Environmental Defense Fund 

FOOD SYSTEMS 

The Biden administration also took several actions to support the building of climate-smart food systems in developing countries by increasing financing and instructure and expanding key initiatives working to address the impacts of climate change on global food systems.

"The climate crisis cannot be solved without tackling food systems. The two go hand in hand. It’s critical that we support finance and infrastructure that puts frontline communities not just at the table, but also in leadership roles. This includes making sure they are truly the beneficiaries of any economic opportunities and help shape investments at the local and community level.

Today’s announcement from the White House underscores the need to tackle multiple challenges at once, including providing finance, technology and sound policies to make our food, water and agricultural systems more resilient in the face of climate change. The focus on supporting financing for climate-smart food systems across the globe and particularly in Africa will be essential to meeting regionally specific assistance. This will be necessary to give farmers, fishers and those in the food systems supply chain the finance, tools and information they need to make climate-smart decisions.

These commitments include expansion of Feed the Future, AIM4C, PREPARE, the Global Methane Pledge and the Global Fertilizer Challenge that are aimed at addressing the impacts from climate change. We’re encouraged that food systems are being recognized as part of the challenge – but also part of the solution. This is just a start – much more needs to be done and we are not moving fast enough. We must show greater commitments to close the funding gap and fundamental transformation of our food systems that we know is needed so that people and nature can thrive together."

• Angela Churie Kallhauge, Executive Vice President of Impact, Environmental Defense Fund 

Biden also spoke about the new Energy Transition Accelerator, which has the potential to speed the transition to clean energy in developing countries, and the latest draft of rules designed to dramatically cut methane pollution from U.S. oil and gas production. 

FOR IMMEDIATE RELEASE

(WASHINGTON – Nov. 11, 2022) Three new reports based on work supported by the Bezos Earth Fund were released today by Environmental Defense Fund (EDF), highlighting the potential of different blue carbon interventions to help in the fight against climate change and act as natural climate solutions (NCS), some of which may be marketable with further research and economic and policy action. This important release comes as countries across the world have come together at the 27^th United Nations Climate Change Conference of the Parties (COP 27) in Sharm el-Sheikh, Egypt to act towards achieving the world’s collective climate goals as agreed under the Paris Agreement and the Convention.

Blue carbon is the carbon that is captured and stored naturally in various parts of the world's ocean and coastal ecosystems, including both natural habitats and the species that live within them. The oceans serve the planet as a massive natural carbon sink, but because of climate change, overfishing and other pressures, we have degraded the natural pathways through which oceans capture and store carbon. EDF scientists have been studying pathways that could restore and enhance the ability of natural systems to store blue carbon. Many of these blue carbon NCS could bolster biodiversity, improve human livelihoods and offer other important benefits while building thriving ocean ecosystems. These latest reports strengthen our understanding of which blue carbon NCS hold the most promise, for example preserving the functioning of key biota in the open ocean for their role in carbon sequestration, and avenues for research and policy development across the suite of NCS. Ongoing work is exploring the various costs and risks associated with these NCS as well as political, cultural and ethical constraints.

“These latest Blue Carbon reports by EDF do a great job pulling together our current understanding of carbon in ocean ecosystems," said Dr. Andrew Pershing, Director of Climate Science at Climate Central. “They provide a science-based evaluation of the strengths and limitations of different ideas for preserving or increasing carbon dioxide stored in the ocean." 

The three blue carbon reports highlight the state of the science on nearshore blue carbon pathways, which have historically received the most attention, as well as emerging NCS that have been proposed for the open ocean and those involving seaweed aquaculture. The ultimate objective of this work, based on key findings from a series of expert workshops EDF conducted over the past year, is to identify scalable interventions that could preserve or magnify NCS pathways and that are ready to implement – i.e., interventions that are likely to result in durable carbon sequestration via a NCS pathway, are also likely to generate multiple ecological and socio-economic benefits with minimal risk of adverse impacts.

“With the urgency of compounded biodiversity and climate crises, it would be tempting to rush straight into on-the-ground blue carbon initiatives and projects,” said Dr. Rebecca Gruby, Associate Professor at Colorado State University. “EDF’s up-front investment in a thoughtful planning process can help guide the field toward more effective and equitable blue carbon work globally.” 

Overall, the work has highlighted several important avenues for further research and policy engagement to help identify blue carbon NCS that hold the most promise for improving outcomes for people and nature.

“With a clearer picture of the suite of benefits these blue carbon NCS can offer, as well as any costs and risks associated with them, we can better understand where and how we advance research and policies to ensure that blue carbon pathways offer credible solutions to the climate crisis, including through carbon markets,” said Dr. Kristin Kleisner, Senior Director for Ocean Science at EDF.

Read the reports:

• Natural Climate Solutions in the Open Ocean
• Coastal Natural Climate Solutions
• Carbon Sequestration by Seaweed

Visit edf.org/issues/blue-carbon to learn more.

(Washington, D.C. – Nov. 11) The U.S. Environmental Protection Agency today announced its latest regulatory proposal to reduce substantially oil and gas methane pollution. The new draft builds on and strengthens the agency’s initial proposal released last November. 

“The Biden administration is continuing to advance the ball on these crucial standards,” said Jon Goldstein, Senior Director of Regulatory and Legislative Affairs at Environmental Defense Fund. “Cutting methane pollution from the oil and gas industry is one of the most immediate and cost-effective ways to slow the rate of global warming while improving air quality and protecting public health. EPA’s proposal reinforces the United States’ firm commitment to climate action as the world convenes in Egypt to renew efforts to stem global warming. Minimizing wasteful methane emissions can also help meet energy needs during the geopolitical crisis, even as we continue to decarbonize the world’s energy systems."

“EPA’s proposal strengthens a number of critical pollution safeguards, including by ensuring regular inspections at high-polluting, lower-producing wells, unlocking advanced monitoring technologies, and addressing pollution from abandoned wells,” said Peter Zalzal, Associate Vice President for Clean Air Strategies. “The proposal relies on modern, proven technologies and best practices, including zero-emitting solutions, that, once strengthened and finalized, will deliver enormous climate and public health benefits for millions of people across the country. We look forward to further reviewing the proposal and working with EPA and all stakeholders to make the final rule as protective as possible.”

EPA’s proposal takes steps forward to reduce routine flaring, though further strengthening is needed to eliminate this wasteful and polluting practice.  EPA has also sought comment on questions related to the impacts of the Inflation Reduction Act, which can help to further accelerate methane pollution reductions.

The U.S. oil and gas industry emits 16 million metric tons of methane annually, which has the same near-term climate impact as 350 coal-fired power plants. According to analysis from Environmental Defense Fund, reducing waste of natural gas from leaks and flaring could provide over half of the 50 billion cubic meters per year of natural gas that the Biden administration has pledged to our European allies to address the energy crisis brought on by the Russian war on Ukraine.

Benefiting Communities

The regulations proposed by EPA today build on the agency’s initial proposal, as well as federal standards that were restored by bipartisan majorities in Congress last year with broad backing from industry and the public. 

Communities across the country stand to benefit from strong rules that cut methane emissions, as well as smog-forming VOCs that contribute to ground-level ozone problems and other air toxics released alongside methane. Peer-reviewed research has also found that among those living closest to oil or gas wells, a disproportionate share are people of color in several key production areas.

Military and political leaders agree that curbing emissions of methane offers an important near-term solution for advancing both climate and energy security goals as we work to decarbonize our economy in the long-term.

Strong standards from EPA will also work in conjunction with Congress’s recently-enacted Methane Emissions Reduction Program (MERP) to drive down methane pollution. MERP, which assesses a fee on oil and gas operators that are responsible for excessive methane pollution, provides funding for regulators, communities and companies to mitigate health- and climate-harming pollution from the industry.

High-polluting, Lower-producing Wells

Today’s proposal addresses emissions from high polluting, lower-producing wells – over 3/4 of which are owned by large companies that operate over 100 wells each and averaged gross revenues of nearly $335 million in 2019.

The latest peer-reviewed research finds that these wells– sometimes called “marginal” – wells drive over 50% of all wellsite methane pollution nationwide, despite producing just 6% of the country’s oil and gas.

The proposal requires regular monitoring at all sites with failure-prone equipment –  this is critical for reducing equipment leaks, which are responsible for 63% of production site methane emissions.

The proposed standards also maintain strong requirements to transition toward zero-emitting pneumatics, which are the industry’s second largest source of methane emissions.

Importance of Reducing Flaring Pollution

EPA’s proposal takes steps forward to reducing routine flaring of associated gas and further action must be included as the rules are finalized to reduce this wasteful and polluting practice. A recent study in Science found flaring emits five times more methane than previously thought due to flare malfunctions and inefficiencies. Analysis from Rystad Energy shows solutions to address routine flaring are overwhelmingly cost-effective and commercially available. 

Energy producing states like Colorado and New Mexico have moved to curb emissions from smaller, leak-prone wells and end the polluting practice of routine flaring, demonstrating how workable these commonsense solutions can be. Recent congressional action further underscores the broad support for EPA oil and gas standards and includes funding that will further drive down the cost of cutting methane pollution.

Following today’s proposal, a public comment period will commence which will include public hearings and testimony. The rule is expected to be finalized next year.

Today the Canadian government announced it will make significant improvements to federal regulations that limit methane emissions from the oil and gas sector.

Methane is a potent greenhouse gas that is fueling the climate crisis. Reducing methane emissions from the oil and gas industry is the fastest and cheapest way to stave off the most catastrophic impacts of climate change.  At last year’s climate conference, Canada announced an ambitious goal to reduce 75% of industry’s methane emissions by 2030. The government also signed on to the Global Methane Pledge, promising to reduce economy-wide methane pollution by 30% on that same timeframe. The actions announced today, once implemented and enforced, will help Canada meet its 2030 goal. 

“Canada is sending a strong signal that it’s serious about cutting methane pollution. It’s critical that new regulations end the wasteful and polluting practice of routine venting and flaring, as well as require more frequent leak inspections and accurate emissions reporting. 

We look forward to working with Environment and Climate Change Canada to ensure these policy changes are strong enough to meet the urgent moment and reaffirm Canada’s leadership on fighting the climate crisis.”

• Ari Pottens, Senior Campaign Manager for Canada, Environmental Defense Fund

“Climate change poses significant and growing financial risks across the United States. Today’s proposed standard, the Federal Supplier Climate Risks and Resilience Rule, from the Federal Acquisition Regulatory Council would help ensure that the U.S. federal government – the world’s largest buyer – can make informed purchasing decisions that account for climate-related financial risks. Doing so is an important step to safeguarding the health of the American economy and ensuring resilience of essential government functions.

“The proposed standard, if finalized, would advance these crucial protections by requiring the federal government’s major suppliers to publicly disclose their greenhouse gas emissions and climate-related financial risks, and to set targets for reducing their emissions. This information is critical as climate change-amplified extreme weather conditions like droughts, storms, and wildfires pose increasing financial risk – and the U.S. government and its supply chain are not immune.

“Consideration of climate-related financial risks in government procurement is vital and overdue, as the U.S. Government Accountability Office has noted. We urge the swift finalization of this proposed standard.”

• Michael Panfil, Senior Director and Lead Counsel of Climate Risk and Clean Power at EDF

FOR IMMEDIATE RELEASE

(NEW YORK — Nov. 9, 2022) Yesterday was a big win for New York State’s nature and communities with the overwhelming passage by voters of the Clean Water, Clean Air and Green Jobs Environmental Bond Act. As the largest environmental bond act in state history at $4.2 billion and the largest on any ballot anywhere in the nation in 2022, the measure will support environmental improvements that preserve, enhance and restore New York's natural resources and create more than 84,000 local jobs.  

The Act’s passage represents the work of a diverse coalition of more than three hundred environmental organizations, unions, and business groups. We thank the leadership and membership of this coalition who led campaigns to support and educate voters about the measure, and to voters who chose to say yes to environmental improvements that preserve, enhance, and restore New York’s natural resources and create more than 84,000 local jobs.  

"This November, New Yorkers said “Yes” to investing in clean water to drink, clean air to breathe, reduced flooding, environmental justice and jobs. This Act, propelled forward by an incredible coalition of partners, is a win for everyone and will make an impact in communities across the state for generations to come."

- Kate Boicourt, Director, Climate Resilient Coasts and Watersheds New York - New Jersey   

Read more about this historic win in this new blog.

“The U.S. midterm elections are still very much in the balance. While we don’t know all the results yet, and may not know for days, it’s clear that climate action allowed candidates to show that Congress can make progress on important issues.

“From New Hampshire to Michigan to Colorado, voters showed up for climate champions, returning many of them to office after passage of the most transformative climate measure in U.S. history. These unprecedented investments to hasten the transition to clean energy, spur innovation and reduce climate pollution helped prevent the losses that the president’s party typically suffer in the midterms.

“There's much work ahead. Climate change doesn’t care about political parties, and we will work with anyone who is serious about taking bold action to tackle it.”

          - Fred Krupp, president of Environmental Defense Fund

(SHARM EL-SHEIKH, EGYPT) As climate change threatens food production and crop yields around the world, agricultural finance institutions also face material threats to their businesses — yet most have not incorporated climate change into decision-making or taken action to support their farmer clients in navigating climate threats. That’s the topline finding of a new survey of 167 agricultural financial institutions in North America, Europe and India, released today at COP27 by Environmental Defense Fund and Deloitte.

“One billion farmers around the world are already facing climate change damages to their farms and livelihoods. They’re managing as best they can, but can only do so much without the support of the lenders, insurers and co-ops that they partner with every season,” said Angela Churie Kallhauge, executive vice president for impact at EDF. “Transition finance is the missing catalyst for agricultural adaptation at scale. Unleashing it will help protect food supplies, rural economies and the stability of a major financial sector.”

The survey is the first of its kind to gauge agricultural financial institutions’ perceptions about the challenges and opportunities presented by climate change, and actions they have already taken in response or plan to take in the future.  

Globally, 87% of respondents expect climate change to pose a material risk to their businesses in the future, for example by making it more likely that farmer clients experience crop losses and default on their loans. At the same time, 45% of agricultural finance institutions think that climate change will present opportunities for their businesses, such as new financial products or markets for climate-smart agriculture.

Despite this, 75% of respondents do not yet significantly consider climate change in their decision-making processes, and 59% have not set climate change goals for their agricultural portfolios. 

“Addressing climate change in agriculture will require development of new tools and approaches for financial institutions to support their farmer borrowers,” said Luke Disney, senior vice president of sustainability and climate at Rabobank. “This report demonstrates the best practices some financial institutions are implementing and where more work needs to be done.”

Regional differences between agricultural financial institutions also emerged.

• Impacts on farmers: In the U.S., more than one-third of financial institutions surveyed don’t think climate change will affect their farmer clients’ financial situations, compared to 0% in India, 2% in Europe and 9% in Canada.
• Expected losses: More than 50% of survey respondents in India expect to experience a higher rate of losses due to farmer defaults caused by extreme and variable weather conditions. Globally, the expectation of higher default losses is 32%.
• Anticipated opportunities: 78% of respondents in India anticipated increased demand for extreme weather-specific financial products, compared to 60% of respondents in Europe and 57% in North America.

“Banks are aware of the risks and opportunities presented by climate change, but need greater information, resources and collaboration to equip them to act,” said Kyle Tanger, managing director, Deloitte Consulting LLP, and Deloitte U.S. sustainability consulting leader. “Data plays a key role. Organizations that can effectively collect and analyze climate data — or form strategic partnerships that enable greater data access — will be better positioned to make smarter climate-related decisions and capitalize on emerging opportunities.”

Banks can better manage climate risks, seize climate opportunities and help farmers adapt with the following four strategies:

1. Strengthen climate risk governance by educating leadership on climate risk management and building climate risk teams.
2. Improve data collection about climate change, weather and farm production, and use this data to compare future climate change scenarios. This is the foundation for better measurement and management.
3. Anticipate farmers’ changing financial needs and develop products and services that help them adapt to climate change.
4. Build partnerships with external organizations to expand educational support and incentives that will help farmers navigate climate risks.

“The financial sector has taken steps to measure and manage climate risks in the oil and gas, real estate, and other at-risk sectors, but more work needs to be done in agriculture,” said David Carlin, program lead for climate risk and the Task Force on Climate-Related Disclosures at the U.N. Environment Programme’s Finance Initiative. “This survey demonstrates that agricultural finance institutions must take greater action to support their borrowers in adapting to climate change.”

Download the full report on EDF's farm finance hub.