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Why Higher Pollution Costs Aren't Denting Coal Demand in EU

  • Surging carbon cost also boosted price of cleaner natural gas
  • Coal is rising after miners held back spending on new capacity
Uniper AG's Ratcliffe On Soar Coal Power Plant As EON SE Loosens Ties To Old Energy
Photographer: Chris Ratcliffe/Bloomberg
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If you thought the surging price of fossil-fuel emissions in Europe would hurt coal demand, think again.

The highest prices for carbon credits in a decade have also lifted natural gas, discouraging power stations from making the switch away from coal. As a result, demand remains strong for the dirtiest fossil fuel in the continent that’s doing the most to clean up its economy. Coal prices as a result reached their highest in five years on Tuesday.