Institutional investors representing more than €9trn in assets have urged EU policymakers to preserve the bloc’s methane regulation, warning that delays would undermine regulatory certainty and climate-risk management.
In a statement led by the Institutional Investors Group on Climate Change (IIGCC), 55 institutional investors called on the European Commission, European Parliament and EU member states to maintain and implement the EU Methane Emissions Regulation (EU MER) as adopted, including its timeline and core provisions.
Asset owners backing the statement include Sweden’s AP3 and AP7, Denmark’s PFA Pension, PKA, Sampension and AkademikerPension, and the UK’s NEST and Church of England Pensions Board.
“As prudent fiduciaries, we recognise the economic and financial risks of climate change and the comprehensive response it demands. Reducing oil and gas methane emissions is one of the fastest, lowest-cost ways to limit near-term global warming,” the letter stated.
The renewed call follows an investor statement first published by IIGCC in October 2025.
The investors warned that delaying or weakening the regulation would undermine regulatory certainty for companies already preparing to comply and slow progress in reducing methane emissions.
The call comes after European Commission president Ursula von der Leyen announced an additional year of flexibility for exporters on methane. Requirements for importers to demonstrate producer-level monitoring, reporting and verification equivalence are currently due to apply from January 2027.
Eric Christian Pedersen, head of responsible investments at Nordea Asset Management, said investors rely on predictable rules and credible information for effective capital allocation, risk assessment and long-term planning.
“The EU Methane Regulation provides a robust framework to address a material source of climate and operational risk. It also signals that methane performance matters,” he noted.
“Reopening or delaying these rules risks creating more uncertainty for companies already preparing for compliance and potentially rewards laggards, rather than resolving the practical questions that remain. The focus should be on identifying workable solutions that help industry comply while keeping the regulation’s ambition and timeline intact,” Pedersen continued.
The investor statement urges EU policymakers to:
- avoid reopening the EU MER or introducing legislative delays to its implementation timeline;
- ensure consistent and timely implementation across member states;
- apply rigorous standards when assessing whether non-EU jurisdictions’ requirements are equivalent to those applying within the EU; and
- support a practical approach to gas tracing that preserves the regulation’s integrity while maintaining market flexibility and minimising impacts on consumers.
Laura Hillis, managing director of responsible investment at Church of England Pensions Board, said: “Methane is one of the cheapest and most efficient emissions cuts available to the oil and gas industry. Companies have known this regulation was coming for years, and further attempts to delay it raise governance concerns and undermine claims that the industry is serious about addressing climate change.”
