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Analysis of the US Environmental Protection Agency’s Clean Power Plan 

  • September 2015
  • -
  • Frost & Sullivan
  • -
  • 28 pages

Summary

Table of Contents

Analysis of the US Environmental Protection Agency’s Clean Power Plan : Significant Impact Across the Power Supply Industry in the United States and Asia-Pacific

Under President Obama’s energy-efficiency initiatives, the United States has been focusing on improving its Environmental Sustainability Index by reducing emissions from its power plants. The most recent and significant of these initiatives is the Clean Power Plan announced by President Obama and the Environment Protection Agency (EPA). The plan aims to reduce carbon emissions in 2030 by 32% based on the 2005 emission levels from the power generation sector. This market insight analyzes the impact of implementing the Clean Power Plan across the United States and also assesses its impact on the Asia-Pacific power market.



Key Findings

Under President Obama’s energy-efficiency initiatives, the United States has been continuously reducing carbon-dioxide (CO?) emissions by % from 2005 until 2015. The country plans to reduce CO? emissions by % till 2030 with the Clean Power Plan (CPP) enforced by Environmental Protection Agency (EPA).

- However, uncertainty about the presidential election (until 2016) has put implementation of the CPP at risk due to the varied support expected from different Presidential candidates. This is further complicated by lawsuits from coal-reliant power-generating states.

- In 2015, there is a high chance that China, India, and other high CO? emitters will reject the United States’ commitment to emission reduction because of the risk in CPP implementation. These regions prefer to wait for a reduction in implementation risks before making any commitments to emission targets.

- In case of CPP implementation, US coal consumption will decrease, thus making more coal available for countries in need of coal; this includes China, India, and Malaysia. US coal will compete with Australian and Indonesian coal.

- Efficiency and emission-control technologies will benefit from more investments and commercial viability, thus helping coal-reliant power-generating nations in Asia-Pacific to adopt similar technologies faster than previously expected.

- Renewable energy integration technologies will get an investment boost from increased adoption in the United States and countries in Asia-Pacific.

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