E3G

Reuters: Carbon price won’t push power sector away from coal

By Quentin de Molliens

The San Diego Union Tribune carries a Reuters story looking at the lucrative use of coal by power generators in Europe.

To reach Kyoto targets, European countries have set up carbon trading schemes, which allow industries to buy permits to emit carbon dioxide. But the recent rises in oil and gas prices mean that coal still one of the cheapest options to produce energy.

This issue is highlighted by a quote from Nick Mabey, E3G chief executive:

Energy price rises have driven more investment into coal and coal to liquids than into renewables, and have swamped carbon prices”