• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

2

Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock

3

Meet the 2 men putting New York's $300 billion pension fund in play for the first time in 20 years

1

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

2

Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock

3

Meet the 2 men putting New York's $300 billion pension fund in play for the first time in 20 years
Barack Obama

The EPA’s carbon plan won’t hurt Corporate America

By
Andrew Winston
Andrew Winston
Down Arrow Button Icon
By
Andrew Winston
Andrew Winston
Down Arrow Button Icon
June 2, 2014, 1:10 PM ET
Photo: Mark Wilson/Getty Images
Add Fortune on Google for similar content.

President Obama has said that fighting climate change is one of his top priorities. He has finally made good on that promise when he announced on Monday that new federal regulations will force states and power plants to reduce carbon emissions by 30% by 2030 (from a baseline of 2005 emissions). As widely reported, the regulatory mechanism is meant to be flexible, with four main options now open to the states – states can choose from energy efficiency, shifting from coal to natural gas, investing in renewable energy and discounts to encouraging consumers to move to off-peak hours.

It all sounds wonky and focused only on the power sector, but these new rules could bring deep change for all businesses and all citizens. Those fighting progress are of course crying foul and shouting about economic devastation from burdensome regulations – the U.S. Chamber of Commerce put out an absurd “analysis” of the regulations before they were released. There will obviously be a cost for utilities to comply, but industry generally overestimates – often by an order of magnitude – the expense to meet tougher standards.

And to say, as the Chamber does, that these regulations are the prime source of uncertainty for utilities, is an exaggeration at best. The utilities were already at a point of no return even without regulations, and investors have begun to figure it out. Barclays bank just downgraded the corporate debt of the entire U.S. utility sector to an “underweight” rating in its portfolio. The bank declared that an industry that was once “seen by many investors as a sturdy and defensive subset of the investment grade universe” was now risky because of the threat of cheap solar power. Clean tech innovation is already well under way and deeply impacting older industries. The new regulations will only accelerate the move.

Regulating power plants and utilities is going to propel innovation across many sectors – not just power technology, but anything that improves energy efficiency, including new technologies for buildings, agriculture, electronics, and even water (we use 13% of our electricity to move, heat, and treat water). So, yes, dirtier power will get more expensive – and that’s part of the point – but we will innovate. We will drive total energy use down and use of clean energy up.

There will be other ripple effects making the carbon reductions from these regulations greater than they seem. Electricity, as some critics point out, is “only” 32% of U.S. emissions, but that’s only part of the story. Transportation makes up another 28% of our carbon pollution. As we make power generation cleaner, plugging a Tesla (TSLA) into the grid will kill two very big birds with one electric stone.

So all of that said, what should a company that isn’t in the business of generating power do to prepare for what’s coming? I’d suggest moving to renewable energy as fast as possible, if only to avoid uncertainty. Will utilities be able to pass along whatever costs they incur? That is, will our energy costs rise? Who knows, but it does seem likely that traditional, dirty energy will be getting more expensive.  It’s very simple in theory – the less energy you use in total, and the more clean energy you use, the less vulnerable your business (or home) is.

Consider the organizations – mainly retailers and big tech companies – that have been moving aggressively to renewable energy already. IKEA will make 70% of its own power by 2015 (and over 100% of its needs in the U.S.). Wal-Mart (WMT) gets 24% of its electricity from renewables (granted, two-thirds of that comes from the green power their utilities are already generating, but it’s still a lot of clean power onsite or near to stores). Apple (AAPL) gets about 100% of its power for its data centers from the wind, sun, and fuel cells.

I could go on, but the key question is this: How much do these companies care about these new rules and the cost of dirty power? Well, I’m guessing IKEA cares about 70% to 100% less than some of its lagging peers. As a homeowner making over 50% of my own power from the sun, I know I’ve got less directly at stake in this debate.

Regulations and laws aren’t fun. They’re not sexy. The battles over these laws will be bloody, so why not avoid the war? It’s time for companies to actively seek ways to dramatically reduce their energy use and shift their supply.

For utilities – and all companies really – the writing is not just on the wall, it’s now on the books.

Andrew Winston is founder of Winston Eco-Strategies. He is also author of The Big Pivot: Radically Practical Strategies for a Hotter, Scarcer, and More Open World. Follow him @AndrewWinston.

About the Author
By Andrew Winston
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

MSCI delays Indonesia’s market status review until November
AsiaIndonesia
MSCI delays Indonesia’s market status review until November
By Prima Wirayani, Bernadette Toh and BloombergJune 23, 2026
4 hours ago
sb
Commentaryclimate change
The climate policy triangle: why leaders can no longer choose between growth, security and sustainability
By Sebastian BuckupJune 23, 2026
9 hours ago
Amazon Prime Day isn’t a midsummer shopping event anymore. Here’s what changed in 2026
RetailAmazon
Amazon Prime Day isn’t a midsummer shopping event anymore. Here’s what changed in 2026
By Vidhi Choudhary and Retail BrewJune 23, 2026
10 hours ago
The hidden cost of your AI rollout: burning out the high performers running it
Workplace Cultureburnout
The hidden cost of your AI rollout: burning out the high performers running it
By Mikaela Cohen and HR BrewJune 23, 2026
10 hours ago
Tom and Diane Peterman pose outside their home at Black Lake on Wednesday, April 29, 2026, in Grant Township, Mich.
EnvironmentNatural disasters
FEMA told these families they weren’t in a flood zone. Then ice came through the windows
By Tammy Webber, M.K. Wildeman and The Associated PressJune 23, 2026
10 hours ago
Olympic rings at the Tesero Cross-Country Skiing Stadium ahead of the Milano Cortina 2026 Winter Olympics on February 03, 2026 in Tesero, Italy.
North AmericaSports
After the Knicks and World Cup, New York is ready for another challenge: the Olympics
By The Associated PressJune 23, 2026
10 hours ago

Most Popular

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
19 hours ago
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
Banking
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
By Jim EdwardsJune 23, 2026
21 hours ago
Meet the 2 men putting New York's $300 billion pension fund in play for the first time in 20 years
Investing
Meet the 2 men putting New York's $300 billion pension fund in play for the first time in 20 years
By Nick LichtenbergJune 22, 2026
2 days ago
Current price of oil as of June 23, 2026
Personal Finance
Current price of oil as of June 23, 2026
By Joseph HostetlerJune 23, 2026
18 hours ago
Former U.S. Secret Service agent says bringing your authentic self to work stifles teamwork: 'You don’t get high performers, you get sloppiness'
Success
Former U.S. Secret Service agent says bringing your authentic self to work stifles teamwork: 'You don’t get high performers, you get sloppiness'
By Sydney LakeJune 21, 2026
3 days ago
Current price of oil as of June 22, 2026
Personal Finance
Current price of oil as of June 22, 2026
By Joseph HostetlerJune 22, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.