Climate Changed
Coal at Record in Europe Is Latest Pressure on Utility Earnings
- China’s demand drives up carbon and power costs in Europe
- RWE took hit to earnings on falling margins, trading loss
Photographer: Luke Sharrett/Bloomberg
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China’s thirst for energy is roiling markets in Europe, jolting the outlook for coal-hungry utilities as they struggle to cope with tighter pollution and environmental rules.
Coal for delivery next year in Northwest Europe touched a record $90.65 a ton on Tuesday, a fifth consecutive day of gains that together with higher costs on carbon emissions lifted the price of electricity in the process. China’s power generation needs has drawn in more cargoes of both coal and liquefied natural gas, diverting supplies away from Europe.