Utilities' Carbon-Reduction Goals Will Have Little Impact On U.S. CO2 Emissions

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Utilities' Carbon-Reduction Goals Will Have Little Impact On U.S. CO2 Emissions
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U.S. power utilities to reduce carbon dioxide (CO2) emissions would have a minor effect on U.S. energy-related CO2 reductions

Executing several plans announced by U.S. power utilities to reduce carbon dioxide emissions would have a minor effect on U.S. energy-related COAnnual Energy Outlook 2021

, we created a Corporate Goal case that incorporates assumptions based on carbon-reduction goals outlined in utilities’ integrated resource plans and on the carbon-reduction goals stated in press releases and other utility plans. We collected utility carbon-reduction goals through a comprehensive review of filed integrated resource plans and announced commitments from investor-owned utilities as of October 2020, when we finalized assumptions for the AEO2021.emissions across the U.S. energy system would be 3% lower by 2050 under the Corporate Goal case compared with our Reference case.

This outcome occurs in part because our model identifies existing nuclear generation as being among the lowest-cost options for meeting clean energy or carbon-reduction goals. Existing nuclear plants typically have operation and maintenance costs that are less than the cost of building new low-carbon capacity., includes more information on these assumptions and their effects on the U.S.

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