German utilities protected against sharp rise in ETS carbon emission permit prices
Major German power companies have protected themselves against the sharp increase in ETS carbon emission prices, report Vera Eckert and Nina Chestney for Reuters newswire. RWE has said that its CO2 position is financially hedged until the end of 2022. Rival Uniper said the ETS price rise will force inefficient coal plants out of the market, but added that it had factored in significant price increases for carbon, coal, and gas-fired power generation in the coming years.
Carbon permit prices traded under the EU’s Emissions Trading System (ETS) have almost trebled to over 21 euros per tonne this year due to higher energy prices and measures to reduce the supply of permits.
Read the article in English here.
For background, read the article Rising CO2-price could trigger German coal phase-out in 5 years and the factsheet Understanding the European Union’s Emissions Trading System.