Europe was forced to increase the power output of its coal and gas-fired plants to meet its energy needs once gas imports declined after Russia invaded Ukraine. Worries about an energy crisis stalled the continent’s green transition. But that trend has proven temporary, reflecting the efficacy of EU carbon pricing.
The increase in coal and oil-based power production in the European Union occurred during the first six months of the invasion and started declining last September. This surge and falloff occurred because of the EU’s Emissions Trading System (ETS), which compels European power… …read more
