Obama’s Climate Change Strategy: Details, response and implications for Canada

This briefing by the International Institute for Sustainable Development (IISD) analyzes President Obama's June 2013 climate change action plan. It examines the shift toward Environmental Protection Agency (EPA) sector-regulation for electricity, the potential for alignment with subnational carbon pricing systems, and the implications for Canada's own regulatory approach and the Keystone XL Pipeline approval.

• President Obama's strategy relies on Environmental Protection Agency (EPA) regulation as the primary tool for climate action because legislative carbon pricing options were unavailable due to congressional inaction. A central element is the pursuit of a sector-regulation approach for the electricity sector, which accounts for 40 per cent of U.S. greenhouse gas emissions.
• The U.S. approach to electricity regulation differs from Canada's in that the EPA intends to regulate both new and existing facilities, whereas Canadian regulations have previously focused only on new facilities.
• There is potential for a 'continental equivalency approach' between Canada and the U.S. because both are developing regulatory systems where federal regulations are supported by subnational carbon pricing, such as the Western Climate Initiative (WCI) and the Regional Greenhouse Gas Initiative (RGGI).
• The U.S. plan includes specific targets and funding for energy transition, such as increasing the federal government's renewable power consumption to 20 per cent by 2020 (up from 7.5 per cent), increasing clean energy technology funding by 30 per cent to US$7.9 billion, and providing US$8 billion in loan guarantee authority for advanced fossil energy projects.
• Regarding the Keystone XL Pipeline, President Obama stated that approval depends on whether the project 'significantly exacerbate[s]' carbon pollution, making the pipeline's net climate effects 'absolutely critical' to the decision.
• International reactions to the plan were generally positive, with the UNFCCC describing it as a 'necessary next step.' However, the plan was noted for lacking a formal commitment on climate financing, which is a primary requirement for developing countries in new multilateral agreements.
• Environmental groups were divided: some viewed EPA regulation as the most pragmatic path forward given the lack of congressional support for a national carbon price, while others argued that only a national price on carbon could achieve the reductions necessary to prevent catastrophic climate change.

APA

Dion, J., & Gass, P. (2013). Obama’s Climate Change Strategy: Details, response and implications for Canada. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/climate_obama_climate_profile.pdf

Chicago

Dion, Jason, and Philip Gass. Obama’s Climate Change Strategy: Details, response and implications for Canada. International Institute for Sustainable Development, 2013. https://www.iisd.org/system/files/publications/climate_obama_climate_profile.pdf.

Wikipedia

{{cite report |last1=Dion |first1=Jason |last2=Gass |first2=Philip |title=Obama’s Climate Change Strategy: Details, response and implications for Canada |publisher=International Institute for Sustainable Development |date=July 2013 |url=https://www.iisd.org/system/files/publications/climate_obama_climate_profile.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dion2013obamas, author = {Dion, Jason and Gass, Philip}, title = {{Obama’s Climate Change Strategy: Details, response and implications for Canada}}, institution = {International Institute for Sustainable Development}, year = {2013}, month = jul, url = {https://www.iisd.org/system/files/publications/climate_obama_climate_profile.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }