Policy & Regulation

Europe – carbon pricing and the impact on gas

The outlook for carbon pricing and policy and the impact on gas and power in Europe is analysed in this contributed feature by Daniel Legg from Nexant The outlook for carbon pricing and policy and the impact on gas and power in Europe is analysed in this contributed feature by Daniel Legg from Nexant
By Daniel Legg 22 May 2018 0 30898
Cattenom nuclear power plant, Cattenom, France. There is a long way to go before Europe’s electricity sector will be fully decarbonised. (Thomas Millot/unsplash.com)

Europe’s energy markets are balancing environmental targets with demand and changing sources of generation. The interplay and developing economics of these factors could drive significant change in how electricity is produced and traded in the region going forward. Power generation plans in Germany, the UK and Italy – Europe’s largest gas markets – will impact not only the three countries, but generation, emissions and electricity trade through the region.

In January 2018, the parties negotiating the formation of Germany’s new coalition government announced they had agreed...