Renewable Power Is Booming in Europe and Crashing Its Carbon Market
- Soaring clean-energy production saps demand for carbon permits
- Slow industrial recovery is also holding down emissions
Wind turbines have steadily increased, and strong winds have pushed up production of renewable energy.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
Europe’s carbon market is heading for its worst start to a year since 2016 as a rapid expansion in renewables lowers the need for fossil fuels.
Paying for permits is meant to entice companies to invest in technologies to cut emissions. Yet much of the work to lower pollution in the power sector is being done by structurally higher energy costs following Russia’s invasion of Ukraine, which has accelerated solar and wind deployment.