A recently issued report done by the U.S. Energy Information Administration (EIA) along with a comprehensive study analyzing the Climate Stewardship and Innovation Act presented by the Natural Gas Council (NGC) informs the public and the natural gas industry of the projected impacts of greenhouse gas emissions on our economy.
The Natural Gas Council (NGC), composed of the four natural gas industry trade associations, firmly concluded from the modeled study that natural gas will be a critical component in achieving greenhouse gas emission reductions under any climate change legislation. And National Energy Modeling System (NEMS) projected the impact of greenhouse gas reduction policies on our energy markets and economy.
Constraints were placed on the number of nuclear facilities and power plants utilizing renewable fuels that realistically can be built to achieve the emission reductions mandated. A range of possible outcomes that may occur were addressed as the energy economy adjusts to mandatory carbon constraints. The NGC study focused on the findings, insights and lessons learned which can be applicable to other climate change proposals and any Greenhouse Gas (GHG) Legislation that may be introduced.
The analysis yielded insights establishing a comprehensive program for mandatory reductions of Greenhouse Gas emissions in the United States. It was concluded that solutions to achieve GHG emissions reductions are complicated due to many interdependencies and uncertainties. Results are heavily dependent on the features and functionality of legislative provisions. Global demand for offsets could limit availability to purchasers in the United States affecting the price. The number of offsets available will make a very large difference in the outcomes. Economic impacts depend on the success of new technologies and the rate at which they are adopted.
Given the significant emission reductions desired after 2030, it is very important to understand the implications to the economy and society and what solutions may be available to make necessary changes. Companies selling energy commodities like Triple Diamond Energy Corporation must stay aware of the solutions available to comply to the legislative challenges.
Results show the strong possibility that there will be greater reliance on natural gas to achieve the emission reduction targets established for 2020 and 2030. Given the importance of achieving the emissions reduction targets that Congress ultimately may legislate, the natural gas industry would like to explore, at minimum, using natural gas as a bridge fuel for electric generation, until the other technologies for GHG emission reductions can be commercialized and fully deployed.
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