Morgan Stanley: Aggressive Obama emission target would hurt coal

|By:, SA News Editor

Morgan Stanley analysts are convinced Pres. Obama's plan for cutting carbon emissions from existing power plants will call for a greater than 17% reduction when it is unveiled early next week, meaning the impact on coal demand would be “substantial” in the long term.

In 2009, Obama called for a 17% cut in emissions from 2005 levels by 2020; if he were to stick to that target, the industry might not feel too much pain since lower coal plant output already has cut U.S. power-sector carbon emissions by ~11% since 2005.

NYT reported this week that Obama will use his authority to cut emissions from coal-fired power plants by up to 20%, in turn spurring the creation of a state cap-and-trade program.

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