A coalition of 42 international investors, representing around DKK 22,400bn in assets, has urged the European Union (EU) not to delay or weaken its newly adopted methane emissions regulation for the fossil fuel sector.

In a joint letter, the investors urge the European Commission, parliament, and member states not to reopen or renegotiate the Methane Emissions Regulation, but rather to ensure its consistent and timely implementation across the bloc.

Its warning comes as Brussels advances the so-called omnibus packages, aimed at simplifying EU regulation, placing climate rules under scrutiny.

Among the signatories of the letter is the Sampension community, which emphasises that diluting the rules would undermine both regulatory certainty and Europe’s climate goals.

“Cutting methane emissions from fossil fuels is one of the most effective short-term levers we have to tackle global warming,” stressed SamPensions head of environmental, social and governance (ESG), Jacob Ehlerth Jørgensen.

He added that while there is a legitimate need to reduce regulatory burdens, that goal should not come at the expense of climate integrity.

“We must not lose focus on why there is a need to regulate the climate area. It is crucial that the regulation of this area is not paused or diluted,” argued Jørgensen.

Other signatories include institutional names such as Ninety One, Pictet Group, Railpen, and Royal London Asset Management, which, along with Sampension, have warned the EU that weakening methane rules would exacerbate regulatory uncertainty and stall critical emissions reductions.

The methane regulation is embedded in the EU Green Deal Industrial Plan and aligns with the bloc’s binding 2030 climate goals, which aim for a 55 per cent cut in greenhouse gas emissions relative to 1990 levels.

Methane, a potent greenhouse gas with more than 80 times the warming potential of CO₂ over 20 years, is widely regarded as a priority target for near-term climate action.

Indeed, the rules also dovetail with the EU’s commitment under the Global Methane Pledge, launched at COP26.

The investors concluded that reversing or watering down the regulation now would send the wrong signal, suggesting Europe is backing away from its climate responsibilities precisely when the green transition faces mounting geopolitical and economic headwinds.

“The EU must stick to the implementation,” Jørgensen said, “which will also send a signal that we in Europe are not slacking off on the climate agenda.”

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