Obama will implement regulations calling for major reductions from each state but will grant states their own emissions target and allow them to determine how they will meet the objective.

The federal Environmental Protection Agency is working on the emissions plan, which Obama is set to announce on Monday.

The plan will likely encourage states to use more renewable energy and to lower demand by investing in efficiency programs for homes and businesses.

According to indications the Obama administration has given to environmental groups, states could also use so-called cap and trade systems, in which emissions are restricted and polluters buy and sell rights to release greenhouse gases.

The cap and trade system is already in effect in California, New York, Massachusetts and Maryland.

There is talk that Obama’s legislation will demand a 25% cut in emissions but sceptics have expressed doubt on social media whether the actual achieved figures will reach that amount.

Sceptics claim that the effectiveness of the scheme depends on whether figures are taken from 2005 levels, which the EPA previously used as a baseline when targeting other goals, or current levels.

According to the Energy Information Administration, power plants are responsible for 40% of the US’ emissions, 75% of which comes from burning coal.

Major coal states, such as Kentucky, West Virginia and Wyoming, are likely to be the worst impacted by the greenhouse gas emissions ruling.

Lawsuits form the major coal states are expected over Obama’s plan, as well as a fierce political debate.