Estimated Relative Impacts on Select Manufacturing Subsectors under the American Power Act

This fact sheet by the World Resources Institute (WRI) analyzes the potential impacts of the proposed American Power Act (APA) on manufacturing subsectors, specifically focusing on the chemicals industry. It details the APA's permit system for greenhouse gas emissions and the role of free allowance rebates for energy-intensive, trade-exposed industries.

• The American Power Act (APA) would mandate permits for any facility emitting more than 25,000 tons of carbon dioxide (CO2) or equivalent greenhouse gas, a threshold that would encompass most large chemical facilities in the U.S. The government would cap economy-wide emissions by restricting the supply of these emissions allowances.
• The APA includes a system of free emissions allowance rebates for subsectors based on their trade exposure and energy intensity. WRI's calculations suggest that eligible energy-intensive, trade-exposed manufacturing industries would receive enough free permits to cover all emissions for 2016 and several subsequent years, although the supply of free permits relative to demand might decline faster than expected over time.
• Using U.S. Government Energy Information Administration (EIA) projections across low, medium, and high GHG permit price scenarios, WRI and Standard & Poor’s found that most examined chemicals subsectors would experience only modest compliance and energy effects during the first year of assumed compliance in 2016.

APA

World Resources Institute (n.d.). Estimated Relative Impacts on Select Manufacturing Subsectors under the American Power Act. https://www.wri.org/data/estimated-relative-impacts-select-manufacturing-subsectors-under-american-power-act

Chicago

World Resources Institute. Estimated Relative Impacts on Select Manufacturing Subsectors under the American Power Act. n.d. https://www.wri.org/data/estimated-relative-impacts-select-manufacturing-subsectors-under-american-power-act.

Wikipedia

{{cite report |author=World Resources Institute |title=Estimated Relative Impacts on Select Manufacturing Subsectors under the American Power Act |url=https://www.wri.org/data/estimated-relative-impacts-select-manufacturing-subsectors-under-american-power-act |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendestimated, author = {{World Resources Institute}}, title = {{Estimated Relative Impacts on Select Manufacturing Subsectors under the American Power Act}}, institution = {World Resources Institute}, url = {https://www.wri.org/data/estimated-relative-impacts-select-manufacturing-subsectors-under-american-power-act}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }