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Project Insights

Higher EU carbon prices trigger switch to gas

Higher carbon prices in the EU are helping gas to push coal out of the region’s power mix Higher carbon prices in the EU are helping gas to push coal out of the region’s power mix.
By Andreas Walstad 12 July 2019 Europe & Russia / Pipelines, Storage & Power 0 34390
EU carbon allowance futures

A recent bull run in prices for EU carbon allowances has boosted the profitability of gas-fired power compared with coal across Europe.

The price of EU carbon allowances rallied this week after Germany signalled it may cancel a number of allowances as part of its planned phase-out of coal-fired power plants. The benchmark December 2019 contract was trading above €28 per ton on the ICE exchange on Friday morning, its highest level in 11 years and...