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Policy & Regulation

EU power imports undermine climate policy

With growing EU electricity imports and a looming carbon border tax, neighbouring countries may be pressured to align with the EU’s carbon market in order to create a level playing field With growing EU electricity imports and a looming carbon border tax, neighbouring countries may be pressured to align with the EU’s carbon market in order to create a level playing field.
By Christian Ernhede 6 February 2020 Europe & Russia / Policy & Regulation 0 34994
EU net electricity imports increased from 3.1 TWh in 2017 to 21 TWh in 2019. (Pixabay)

The key issue: Gas-fuelled power plants in the EU are being increasingly undercut by electricity imports from neighbouring countries not imposing costs for emissions.

Interfax analysis: Net electricity imports to EU countries are rising in tandem with the costs of carbon allowances. In the short term, growing power imports from neighbouring countries such as Ukraine and Turkey could undercut some coal-to-gas switching within the bloc.

That said, some countries neighbouring the EU are eyeing the development of carbon-pricing mechanisms to align electricity production costs with those...