×
×
Policy & Regulation

Surge in EUA prices is good news for gas

The recent bull-run in carbon prices has restored confidence in the EU ETS and may help gas win further market share over coal in power generation The recent bull-run in carbon prices has restored confidence in the EU ETS and may help gas win further market share over coal in power generation.
By Andreas Walstad 15 February 2018 Europe & Russia / Exploration & Production 0 29596
A combined-cycle gas turbine plant in Cadiz, Spain. (Iberdrola)

Benchmark prices for EU carbon allowances hit €10 per ton ($12.4/t) for the first time in over six years on Wednesday, spurring optimism the Emissions Trading System (ETS) is fit to deliver price signals that will incentivise fuel-switching from coal to gas in power generation. 

It is an impressive comeback for a system that many had written off and which has required a high degree of regulatory intervention to address its massive 1.7 billion or so surplus of allowances. 

The EU institutions agreed in November...

Further reading