{"id":21615,"date":"2022-02-28T09:36:22","date_gmt":"2022-02-28T14:36:22","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=21615"},"modified":"2022-02-28T10:37:20","modified_gmt":"2022-02-28T15:37:20","slug":"round-one-of-epa-methane-comment-period-draws-record-engagement-heres-how-companies-and-investors-can-step-up-in-round-two","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2022\/02\/28\/round-one-of-epa-methane-comment-period-draws-record-engagement-heres-how-companies-and-investors-can-step-up-in-round-two\/","title":{"rendered":"Round one of EPA methane comment period draws record engagement; Here\u2019s how companies and investors can step up in round two"},"content":{"rendered":"

\"\"<\/a>The public comment period for the Environmental Protection Agency\u2019s proposed oil and gas methane rules<\/a> generated more than 400,000 individual submissions, including many from energy and financial companies that support Biden administration efforts to reduce emissions of this powerful greenhouse gas.<\/p>\n

However, our analysis of comments from energy and investment companies shows a troubling divide between those that support strong rules and others trying actively to weaken them before they even take effect. When EPA\u2019s next comment period opens this spring, it will be critical for supporters to weigh in on the overall goal, as well as on specific provisions \u2014 including elimination of routine flaring, transitioning away from polluting pneumatic equipment, and ensuring comprehensive leak detection, including at smaller wells.<\/p>\n

A broad collection of investors representing trillions of dollars in capital has urged oil and gas companies to demonstrate genuine effort to reduce their emissions. Yet despite increasing numbers of targets from industry in recent years, U.S. methane emissions remain sky high<\/a> \u2014 suggesting voluntary efforts will not be enough to meet this challenge.<\/p>\n

If responsible operators already taking action do not take advantage of this unique policy opportunity, the worst actors will continue to bring down the reputation of the industry as a whole for years to come.<\/p>\n

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A critical, cost-effective backstop on near-term climate risk<\/strong><\/p>\n

An ever-growing body of research tells us that methane is not only one of the most powerful climate pollutants, but also that its potency makes cutting methane the simplest way to reduce warming quickly. Research also shows that the oil and gas industry, which is responsible for 25% of global human-made methane emissions, offers the most straightforward and affordable reduction opportunities.<\/p>\nRound one of EPA methane comment period draws record engagement; Here\u2019s how companies and investors can step up in round two <\/a><\/span>Share on X<\/a><\/span>\n

EPA\u2019s proposed rules are conservatively estimated to cost around $0.10 per barrel of oil equivalent, less than 1% of current oil prices \u2014 far less than the range of daily price fluctuations (for further cost-analysis and detail on EPA\u2019s proposed rules, please see our Investor Guide<\/em><\/a>).<\/p>\n

It is also clear that methane risk is a financial risk. For the growing number of net-zero-committed investors and lenders, methane policy offers an immediate opportunity to mitigate climate risk in their portfolio while creating space for more challenging decarbonization issues further down the path to net-zero.<\/p>\n

Responsible investors need private sector peers to join them<\/strong><\/p>\n

The initial EPA comment period was an important opportunity for company engagement, but the results were mixed.<\/p>\n