On Aug. 3, President Obama passed the landmark Clean Power Plan, which would issue new state-by-state regulations for carbon emissions. On the surface, this new legislation looks to bring promising climate reform with little drawbacks, but a closer look reveals some compromising effects to impoverished areas. While the rest of the country may experience more favorable emissions levels, those near the bottom of the poverty rung look to be impacted the hardest by this plan.

The objective of the Clean Power Plan is simple. According to UCSUSA, “The Clean Power Plan establishes state-by-state targets for carbon emissions reductions, and it offers a flexible framework under which states may meet those targets. The final version of the rule would reduce national electricity sector emissions by an estimated 32 percent below 2005 levels by 2030.” The plan operates differently in each state with its results contingent upon that particular state’s choices in how to reinvest in alternate energy sources.

The plan appears promising, but its costs may fall especially hard on people in poverty. An article published in the Wall Street Journal examined exactly how those in poverty would feel the heat from this plan. An excerpt from this article reads, “It is more accurate to say that any economic disparities arise from the rule itself. Regulations that artificially raise energy prices are regressive. By definition the poor — er, low-income community members — spend a larger share of their incomes on fuel and utilities than the well-to-do climate activists.” While it is intended to bring about positive reform, the Clean Power Plan is inadvertently causing more hardship to a struggling group.

Some options exist to help alleviate financial stresses from the plan. The same Wall Street Journal article states, “The EPA thus requires states to set up ‘financial assistance programs’ only for those living near or below the poverty line.” While these plans do help people in poverty support the Clean Power Plan in their state, more needs to be done to make this plan succeed at a reasonable cost for all.

– Diego Catala

Sources: WSJ, UCSUSA
Photo: The Guardian