AES · 10-Q · 2026Q2 · Full report

ESG and sustainability

AES CORP · 2026-08-04 · Importance 29 · Surprise 24

AES faces potential compliance and capital costs under U.S. and international rules covering greenhouse gases, water discharges, coal-combustion residuals, species and habitat protection, and air pollutants including sulfur dioxide, nitrogen oxides, particulate matter, and mercury. EPA and state proceedings affecting CSAPR, combustion-turbine emissions standards, MATS, greenhouse-gas rules, CCR, cooling-water intake, and effluent limitations remain subject to litigation or further rulemaking. AES states that future CSAPR allowance costs, CWA Section 316(b) compliance expenditures, CCR obligations, and a substantially similar Section 111(d) greenhouse-gas rule could be material. California’s OTC policy requires the remaining AES Huntington Beach and AES Alamitos units to shut down and permanently retire by December 31, 2026, subject to participation in the Strategic Reserve established by AB 205.