National coal phase-outs could push down carbon price

The price polluters pay for emitting greenhouse gases could tumble unless policymakers adapt the EU emissions trading system to account for national plans to phase out coal, a business group warns

With a dozen member states planning to wean themselves off coal-fired power generation in the coming years, the price other polluters pay for emitting greenhouse gases could tumble unless policy makers adapt the EU's emissions trading system (EU ETS).

The International Emissions Trading Association, which advocates a market-based approach to CO2 pollution, said on Monday that an ETS 'market stability reserve' (MSR) – set up in response to persistently low prices for EU emissions allowances (EUAs) and strengthened last year  – could only partially mitigate the impact.

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