The U.S. will need to expand the Clean Power Plan beyond electricity producers to meet President Barack Obama’s goals to reduce carbon emissions, according to a Citigroup Inc. report.
The Environmental Protection Agency released a nationwide plan on Aug. 3 that will require the power sector to reduce carbon pollution 32 percent by 2030 from 2005 levels. States may opt to implement their own plans or form a regional initiative.
The final rule was issued after Obama announced a target last November to reduce greenhouse gas emissions by 26-28 percent by 2025, and before the 21st session of the Conference of the Parties to the United Nations Framework convention on Climate Change in Paris Nov. 30 through Dec. 11.
The Clean Power Plan and existing policies from beyond the power sector may cut U.S. economy-wide emissions by only 19 percent by 2030, falling short of Obama’s target, Anthony Yuen, Richard Morse and Edward Morse, Citigroup analysts in New York, said in the report.
The Clean Power Plan “puts the U.S. in a strong position going into the Paris COP21 climate negotiations this winter, sending credible signals that the U.S., as one of the world’s top emitters, is ready to lead,” the analysts said. “For the U.S. to assume an even stronger leadership role, the CPP requires additional reductions beyond the power sector to meet more aggressive carbon targets.”