New US Policy to Reduce Carbon Emissions from the Power Sector
In June 2014, the United States Environmental Protection Agency (EPA) issued proposed greenhouse gas regulations called the Clean Power Plan. Because of opposition in the U.S. Congress to enacting legislation to limit greenhouse gas emissions, EPA used its existing regulatory authority under the Clean Air Act to put forth this proposal. The EPA expects the plan will decrease carbon dioxide emissions from the power sector 30 percent below 2005 levels by 2030. The proposed plan is worth close attention because it includes a number of design elements that could be very useful in China, particularly the concept of energy efficiency as a resource and the practice of improving the dispatch of power plants to reduce emissions. This paper provides an overview of the components of the Clean Power Plan and highlights several design features worth consideration by China’s policymakers.