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EU carbon under pressure as UK auctions resume

The optimism in the EU carbon market seen in 2018 and early 2019 has given way in the face of coal-to-gas fuel switching, the comeback of UK capacity auctions and a continuing weak outlook for gas prices The optimism in the EU carbon market seen in 2018 and early 2019 has given way in the face of coal-to-gas fuel switching, the comeback of UK capacity auctions and a continuing weak outlook for gas prices.
By Alessandro Vitelli 4 hours ago Europe & Russia / Supply & Demand 0 34932
Brigg gas-fired power station in the UK Midlands. (Centrica)

The key issue: The UK is set to resume its participation in the EU ETS for a final year in 2020, adding more supply to a market where prices have been rangebound in recent weeks.

Interfax analysis: The past two years have seen a seismic shift in power generation economics in Europe. Coal began 2018 firmly embedded as the most profitable fuel, but 24 months later it has been decisively sidelined as falling gas and rising carbon allowance prices have flipped the established order...