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Policy & Regulation

Europe’s coal phase-out requires ETS rethink

The phase-out of coal power across Europe risks undesired consequences for gas and clean power unless action is taken to cancel a corresponding number of EU carbon allowances when plants retire The phase-out of coal power across Europe risks undesired consequences for gas and clean power unless action is taken to cancel a corresponding number of EU carbon allowances when plants retire.
By Andreas Walstad 11 July 2019 Europe & Russia / Policy & Regulation 0 34383
The Datteln 4 coal power plant in Germany. (E.On)

The key issue: National plans to phase out coal-fired power generation could lead to a fall in EU carbon prices unless governments choose to cancel allowances when plants retire.

Interfax analysis: Several countries in Western Europe – including the UK, Italy, Spain and the Netherlands – have announced plans to phase out coal-fired power over the next decade, and Germany plans to do so by around 2038. However, closures of coal plants could lead to lower demand for EU carbon allowances, and...