Highlights

• 42 investors with €4.5 trillion in assets urge EU to uphold Methane Emissions Regulation.
• Letter warns that weakening rules could harm market stability and climate goals.
• Methane performance now viewed as a measure of management quality and shareholder value.

A group of 42 top investors, together managing more than €4.5 trillion, has urged the European Union to move forward quickly with the EU Methane Emissions Regulation (EU MER) in its present form.

They warned that any attempt to dilute or delay the rules would weaken confidence in markets and slow progress on methane reduction.

The list of signatories includes Nordea Asset Management, Sampension, Miller/Howard Investments, and the Church of England Pensions Board.

Read More: 198 Signatories Back Strong EU Sustainability Rules in Joint Statement

According to them, regulatory clarity is important for companies preparing long-term compliance plans and for investors managing financial risk.

The regulation’s strict requirements on monitoring, reporting and verification (MRV) are necessary to keep companies accountable, reduce risks to portfolios, and help build competitiveness, said the group.

The investors also emphasised that cutting oil and gas methane emissions is one of the fastest and most affordable methods to limit near-term global warming and noted that methane performance has become a marker of management quality, process safety, and operational excellence, all factors closely linked to shareholder value over time.

The letter urged EU policymakers not to reopen the regulation and to ensure timely implementation in all Member States, as well as called for rigorous standards when dealing with third countries, so that global consistency in methane regulation is not undermined.

By doing this, the EU can safeguard market stability and set a precedent for reducing methane emissions.

Also Read: Trump Moves to Scrap Obama-Era GHG Emission Regulations

Eric Christian Pederson, Head of Responsible Investments, Nordea Asset Management: “Regulatory certainty is fundamental to long-term business planning, and methane reductions are essential for limiting near-term global warming.

“The EU methane rules as they stand aren’t just good climate policy — they’re needed to reduce risk for companies, portfolios, the securities market and society at large. Watering down regulation that companies have already based investment decisions on is counterproductive and risks undermining globally agreed methane reduction efforts.”

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Source: IIGCC