Are American companies underreporting carbon emissions? Satellites offer a clue

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2 days ago

New satellite data shows US oil and gas companies may be underreporting methane emissions by up to two-thirds, casting doubt on corporate climate disclosures. As federal oversight weakens under Trump-era rollbacks, researchers urge governments to adopt satellite-based monitoring to enforce transparency. read more
New satellite data reveals that many American companies, especially in the oil and gas sector are underreporting their greenhouse gas emissions, raising doubts about the reliability of corporate self-disclosures. This discrepancy highlights the potential for satellite monitoring to become a critical tool in ensuring accurate climate reporting and enforcing environmental accountability.
Recent academic research, including a study from King's College London, compared emissions detected by Climate Trace, a global initiative using over 300 satellites and thousands of sensors, with companies' publicly reported figures.
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Alarmingly, about 75 firms were found to be reporting only around a third of their actual methane emissions. Methane, a potent greenhouse gas with a warming effect 80 times that of carbon dioxide over 20 years, primarily leaks from oil and gas operations, making accurate reporting vital for climate mitigation efforts.
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This growing evidence of underreporting comes at a politically sensitive moment in the US, where the federal government under President Donald Trump rolled back numerous climate regulations and openly questioned the science of climate change. Meanwhile, some states, led by Democrats are pushing forward with their own climate disclosure laws to fill the regulatory void left by federal rollbacks.
State-level initiatives in New York and California seek to mandate comprehensive emissions reporting, including scope 3 emissions from supply chains, in contrast to the diluted or frozen federal rules. These efforts face legal challenges but signal increasing pressure on companies to provide transparent climate data. Experts note that while many companies voluntarily disclose emissions and climate risks, standardised and enforceable reporting remains crucial for investors and policymakers.
Satellite technology, currently more precise in detecting methane than carbon dioxide, offers a promising avenue for governments to independently verify emissions data. Researchers propose that authorities use satellite estimates as default emission figures, requiring companies to prove if their actual emissions are lower, a move that could drastically reduce underreporting and improve climate policy effectiveness.
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As states move ahead despite federal inaction and as investors grow more skeptical of inconsistent disclosures, satellite monitoring could play an essential role in holding companies accountable. The technology may well become a cornerstone of future climate transparency, particularly in the areas where political resistance and misinformation continue to cloud efforts to tackle global warming.