Authors

Mike Wilkins and others (Standard & Poor's)

Research organisation

Standard & Poor's with World Resource Institute and APG

Download the report

How U.S. Federal Climate Policy Could Affect Chemicals’ Credit Risk

Report Date

February 2011

Release Date

February 2011

Document summary

Any significant federal action to address climate change will be relevant for the subsectors of the US chemicals industry having significant GHG emissions or a high-dependence on natural gas- or oil-derived raw materials, sub-sectors ranging from alkalies/chlorine to plastics/rubber. Firstly, WRI describes scenarios under two types of potential federal climate policy – an economy-wide market-based system and EPA regulation of GHGs. Secondly WRI and on certain issues S&P analyse how these policy scenarios could influence credit risk factors in 13 GHG-intensive chemical subsectors. Finally, S&P applies the findings with a view to assessing the potential credit impact on two hypothetical companies.