13 US Power Companies Propose 80% Greenhouse Gas Reduction by 2030 to US Government

[Image source= AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Thirteen U.S. power companies have sent a letter to President Joe Biden urging him to significantly increase the greenhouse gas reduction targets, according to major foreign media reports.

Power companies such as Exelon and PSEG called for the adoption of a policy to reduce U.S. greenhouse gas emissions by more than 80% from 2005 levels by 2030.

President Biden is expected to announce the greenhouse gas reduction targets ahead of the Climate Summit scheduled for June 22-23. The Biden administration is reportedly discussing a plan to reduce greenhouse gas emissions by about 50% from 2005 levels by 2030. This target is roughly double the reduction goal set during the Barack Obama administration, which aimed to cut emissions by 26-28% from 2005 levels by 2025.

Although the Biden administration is discussing stronger greenhouse gas reduction targets than the Obama administration, power companies argue that even higher targets should be set. They claim that the 2030 reduction goals must be compatible with the Biden administration’s ambitious plan to achieve carbon neutrality by 2050.

Analysts suggest that the reason power companies proposed such strong reduction targets is to delay the timeline for achieving carbon neutrality as much as possible.

In fact, the Biden administration is known to aim for carbon neutrality in the power sector by 2035. In other words, they proposed bold greenhouse gas reduction targets in advance to delay the carbon neutrality achievement timeline as much as possible.

President Biden included the concept of a Clean Energy Standard (CES) related to greenhouse gas reduction targets in the $2.3 trillion infrastructure bill announced on May 31. However, details on how to specifically implement the CES were not disclosed.

Power companies emphasized that federal government policy goals should be set in a way that supports the strategic development of power companies, including technological advancements.