Europe’s Coal Plant Comeback Drives Up Carbon Permit Prices
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European plans to mobilize idle coal-fired power plants across the continent are pushing up the price of carbon permits needed to burn the dirtiest fossil fuel.
Germany plans to reopen around 10 gigawatts of coal capacity to replace gas-fired generation, along with similar moves to increase burning of the fuel in the Netherlands, Austria, Belgium and France. That means utilities using coal need to buy up more permits in the European Union’s Emissions Trading System to be compliant, tightening their supply.