EU ETS natural gas power plants: why removing them could distort Europe’s power market

Chart showing spot and futures prices for electricity, natural gas, coal, crude oil and EU ETS emission allowances from 2007 to 2035.

EU ETS natural gas power plants are at the centre of a new debate on whether exempting gas-fired generation from carbon costs could reduce electricity prices. The report finds that removing natural gas plants from the EU ETS would create major market distortions, shift generation patterns across Europe, increase gas demand, and deliver uncertain or only temporary price relief. This […]

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