Investors Representing $800 Billion in Assets Support EPA’s Carbon Reduction Goals
A coalition of leading businesses and investors associated with Ceres (an association of investors, companies and public interest groups promoting sustainable business practices and a more healthy global economy) has written to U.S. government leaders in support of the recently announced Environmental Protection Agency’s (EPA) Clean Power Plan. The Plan’s goal is to make existing power plants more efficient and less harmful to the environment and human health by calling for a 30% reduction in power plant carbon emissions by the year 2030. The plan was announced on June 2, under the direction of President Obama. It is similar to proposed guidelines for new power plants announced on September 20, 2013.
Power plants are the largest source of carbon pollution in the U.S., accounting for approximately one-third of all greenhouse gas emissions. The proposed reduction plan affects 1,000 fossil fuel-fired power plants (and their 3,000 generating units). The EPA estimates that by 2030, the health and climate benefits from the proposed standards will total from $55 billion to $93 billion.
The investors, representing more than $800 billion in assets, contend that “climate change (and related policy uncertainty) could add as much as 10 percent to portfolio-wide risk in the next two decades, putting trillions of dollars of institutional investors’ assets at risk…To remain viable and competitive, the electric power sector must invest in cleaner technologies and more efficient resources…”
Wespath is one of 49 investor signatories to the letter. It is available here.
The Ceres press release is available here.