The policy patchwork jeopardising EU carbon reform

The Drax power station in the UK. (PA)

Regulatory intervention and economic growth have boosted carbon allowance prices under the EU’s Emissions Trading System (ETS) in recent months – a welcome development for the gas industry as higher carbon prices could increase the fuel’s share in power generation. 

However, many are concerned that overlapping policies, both at EU and national level, could undermine the progress made so far in reforming the ETS. 

An increased focus on energy efficiency, coupled with growth in renewables and increasing efforts to phase out coal-fired generation, could...