The Institute for Energy Economics and Financial Analysis (IEEFA) has urged investors in Australia to encourage fossil fuel firms to accelerate greenhouse gas emissions reductions by pressing for improved methane reporting and abatement efforts. A new report from the institute highlighted that some of Australia’s largest companies in the oil and gas and coal mining sectors have been slow to reduce the amounts of methane emitted as part of their operations, while simultaneously planning “substantial expansions” of production that will intensify their methane emissions. “By not implementing methane abatement measures, companies risk missing their own emissions reduction targets or breaching regulatory requirements,” said Anne-Louise Knight, Lead Analyst, Australian Coal at IEEFA. “Companies will also be forced to rely on purchasing carbon offsets, increasing their risk exposure in the event of a rising Australian carbon price.” The report examined the records of five companies: oil and gas firms Woodside, Santos and APA Group and two of Australia’s largest coal mining companies, BHP and Whitehaven. It found a significant risk that their self-reported methane emissions are underestimated due to their reliance on flawed estimation methods. The five firms have also taken “minimal action” on methane abatement to date, with “zero or limited” capital allocation or targets specifically addressing methane emissions. “There is a real opportunity for investors to incentivise more rapid action on methane emissions by incorporating methane reporting and abatement into their engagement with fossil fuel companies,” said Joshua Runciman, Lead Analyst, Australian Gas at IEEFA.
