Nearly 200 nations reached a historical agreement at the Paris climate talks this week, in a landmark decision for climate change. The goal is to keep climate change’s impact below two degrees Celsius.
This is the first time nearly every nation has agreed to lower greenhouse gas emissions, including provisions to limit warming to 1.5 degrees Celsius if possible, Utility Dive reports. The U.S. agreed to cut emissions by 26% in the next ten years.
These nations will renegotiate and reevaluate emission reduction commitments and efforts. Legal systems will be in place for these countries to report the efforts and contributions in a universal accounting system.
Experts predict that this deal will have an effect in the long-term for the U.S. power sector. However, these experts predict future carbon constraints and regulations for investors as a result of the deal. Because there is no immediate effect, stakeholders in the industry can help make better decisions on which assets to invest in, according to Utility Dive.
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