DuPont 2015 Annual Report Download - page 49

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Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, continued
48
In 2010, the U.S. Environmental Protection Agency (EPA) launched a phased-in scheme to regulate GHG emissions first from
large stationary sources under the existing CAA permitting requirements administered by state and local authorities. Large capital
investments may be required to install Best Available Control Technology on major new or modified sources of GHG emissions.
In 2015, the EPA promulgated regulations for carbon dioxide emissions from new and reconstructed/modified Electric Generating
Units (EGU's). In 2015, the EPA also promulgated new regulations for carbon dioxide emissions from existing EGUs that would
be based on individual state emission reduction programs. These regulations are currently being challenged in the U.S. federal
court. If the regulations survive these challenges, they may affect the long term price and supply of electricity and natural gas and
demand for products that contribute to energy efficiency and renewable energy. The precise impact of the aforementioned regulations
is uncertain due to the flexibility provided to the states in developing their programs and anticipated legal challenges to this
regulatory approach. A comprehensive national policy that addresses climate change by relying on market-based mechanisms to
drive reductions in greenhouse gases is likely to be more economically efficient than the facility-by-facility controls that would
result from implementation of recently promulgated rules under EPA’s existing authorities.
At the international level, significant differences in regional or national approaches could present challenges in a global marketplace,
highlighting the need for coordinated global policy actions. An effective global climate policy framework will help drive the
market changes that are needed to stimulate and efficiently deploy new innovations in science and technology, while maintaining
open and competitive global markets.