The President’s Climate Action Plan And California’s Carbon Market

In June, President Obama unveiled his Climate Action Plan (the Plan). As we reported in a previous
Client Alert, President Obama emphasized three overarching goals: (1) reduce domestic carbon dioxide emissions by 17 percent between 2005 and 2020; (2) prepare the United States for the impacts of climate change; and (3) lead international efforts to combat climate change. While few specifics were offered, to achieve these goals, President Obama's Climate Change Action Plan includes more than 30 new actions, such as efforts to reduce methane emissions from oil and gas development and the expanded use of renewables, and the President's plan directs the U.S. Environmental Protection Agency (USEPA) to work quickly to complete carbon emission standards for new and existing power plants. This Reed Smith client alert will address the Climate Action Plan's possible impact on the nascent California carbon market given (1) the likely increase in opportunities in renewable energy