EU Energy Policy

Rise in EU carbon prices fuels optimism in gas sector

The gas industry is holding its breath as prices for carbon allowances continue to rise towards fuel switching levels The gas industry is holding its breath as prices for carbon allowances continue to rise towards fuel switching levels.
By Andreas Walstad 23 July 2018 0 31854
A gas-fired power station in the UK. The UK’s Brigg gas-fired power station. (Centrica)

Prices for European carbon allowances have risen again over the past few weeks, and there is now a real possibility they will be high enough to incentivise fuel switching from coal to gas by next year. 

EU carbon prices hit €17 per ton ($19.90/t) for the first time in over seven years last week and were continuing to rise on Monday morning. Market participants anticipate a sharp reduction in the availability of allowances from January next year, when the Market...