Investor Groups Call for Reduction in Fracking Methane Emissions

A group of global investor groups has called for a reduction in the methane emissions produced by shale fracking, saying the emission is 20 per cent more dangerous than carbon dioxide (CO2).

The three investor groups, who represent over 200 investors with estimated assets of $20 trillion, say that they are in support of the air emission levels recommended by the Environmental Health Network, with particular concern about fugitive emissions (emissions which escape into the air).

In a joint statement released yesterday, the North American Investor Network on Climate Risk (INCR), the European Institutional Investors Group on Climate Change (IIGCC) and the Australia/New Zealand Investor Group on Climate Change (IGCC) said that fracking for shale oils and gases was contributing to 37 per cent of the US's methane emissions.

"Methane is more than twenty times more potent than carbon dioxide as a greenhouse gas and has much greater short-term warming potential," Executive Director of the IIGCC Stephanie Pfeifer said.

"Concerned with the negative economic impacts of methane leakage and its contribution to climate change, investors will be taking a range of measures to promote methane emissions reductions. These include engaging directly with companies to understand their approach to methane control, discussing effective regulatory measures with policy makers and working with industry to develop a framework to enable the monitoring of companies' progress on methane control."  

At present, the three groups say they, together with the Carbon Disclosure Project, are working with industry figures and experts to develop a framework for disclosure. This framework will allow potential investors to evaluate a company's methane emissions and trace exactly what the company is doing to reduce methane emissions before investing.

If this framework is successful, companies would disclose their methane emissions as well as their control plans under this framework. The investor groups also says this would see the companies "implement best practice control technologies that have been proven to effectively eliminate most methane emissions."