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Moody’s Ratings said last week that the U.S. Supreme Court’s recent ruling striking down the Chevron doctrine creates legal and regulatory uncertainty for regulated utilities and could make it more difficult for the federal government to combat climate change. .
“Lack According to UtilityDive.com, Moody’s said that the clarity of future EPA directives increases uncertainty and makes it more difficult for power companies to determine their most appropriate and cost-effective generation mix.
“The burden of statutory interpretation could overwhelm lower courts, leading to delays and potential inconsistencies,” the ratings agency said.
Moody’s also said that without new legislation, weakening agency power will make it less likely that the United States will achieve its stated climate goals, thereby increasing the risk of heightened long-term climate-related physical risks.
A separate analysis from Jefferies said the decision could stifle investment in electric vehicles and the development of safer chemicals used in manufacturing.
Because judges will be asked to independently interpret regulations rather than defer to agencies like the Environmental Protection Agency, more lawsuits are likely to be filed challenging agency rules, which could limit investment in the transition to electric vehicles as well as PFAS, or “forever chemicals” The development of alternatives,” said Jefferies analyst Saree Boroditsky.
The analyst noted that Xylem (XYL) stock could be affected if it reduces its PFAS investments, TE Connectivity (TEL), Amphenol (APH), Sensata Technologies (ST) and Littlefuse (LFUS) Other companies may be affected.
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