The power sector carries a considerably great burden of the CO2 emission reductions required to address climate change, a feature common to many scenarios of emissions abatement. These reductions will only be possible if existing plants are replaced with more efficient and less-emitting types of plants over the coming decades.

This brief argues that the policy environment on climate change remains very uncertain even with the US Copenhagen Accord. The author describes how the international policy landscape has changed following the 2009 summit on climate change in Copenhagen, and what the Accord means for companies.