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European Carbon Futures Jump 18%, Green Stocks Soar on EU Plans

  • Road map to curb Russian gas boosts carbon, renewables
  • Less gas likely means more polluting coal power this year
Emissions rise from a smokestack at the PKN Orlen SA oil refinery in Plock, Poland.

Emissions rise from a smokestack at the PKN Orlen SA oil refinery in Plock, Poland.

Photographer: Bartek Sadowski/Bloomberg

European carbon futures rose 18% on Tuesday while wind and solar energy stocks soared, following news that the region plans to cut its dependence on Russian natural gas. 

The European Union laid out a road map to end its reliance on Russian gas in the next few years, which will likely include ramping up spending on renewable energy. But while the move reinforces the bloc’s dedication to its climate agenda, it also supports economic activity that could lead to more emissions in the short term.