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.
15 February 2018
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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 to...
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