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US Ruling to Halt Carbon Regulations ‘Positive’ for Power Producers

© AP Photo / Martin MeissnerCoal power plants are among the biggest producer of CO2, that is supposed to be responsible for climate change
Coal power plants are among the biggest producer of CO2, that is supposed to be responsible for climate change - Sputnik International
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Fitch said in a press release that the decision by the US Supreme Court to temporarily block implementing the regulations of the Clean Power Plan, which was introduced by President Barack Obama in August, benefits power generators and coal-dominant utilities.

WASHINGTON (Sputnik) — The decision by the US Supreme Court to temporarily block implementing the regulations of the Clean Power Plan (CPP), which was introduced by President Barack Obama in August, benefits power generators and coal-dominant utilities, the rating agency Fitch said in a press release on Wednesday.

"We continue to believe that any delay in implementation will be positive for coal-dominant utilities and power generators," the press release stated.

On Tuesday, the US Supreme Court voted 5-4 to temporarily block carbon pollution regulations mandated by the Clean Power Plan pending the outcome of litigation that challenges the law.

Coal power plants are among the biggest producer of CO2, that is supposed to be responsible for climate change - Sputnik International
US Supreme Court Halts Obama Administration's Carbon Emissions Plan
Obama introduced the Clean Power Plan in August 2015 to curb US power plant carbon pollution by 32 percent in the next 15 years. The plan seeks to heavily regulate coal and other fossil fuel plants, and seeks to shift the focus to renewable energy sources such as wind and solar power.

In October, a group of 23 US states filed a lawsuit against the plan, arguing that the rules were illegal and would damage economic interests of the states and their residents.

Fitch noted that the Supreme Court’s ruling to block carbon pollution regulations creates uncertainty for the electricity sector.

"The CPP, which targets cutting CO2 emissions by 32 percent by 2030 from 2005 levels, had already begun to influence the business strategies and capital expenditures across the US power sector," the press release stated.

It is unclear how the industry participants would react to the delay induced by the stay, it added.

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