Coal news and updates

Coal slowdown expected as UK carbon price hits $A44

The UK's lift in its carbon tax floor price - which together with the EU ETS combines to provide the country's price on carbon - is set to trigger coal-fired power plant slowdowns, The Guardian reports.

According to the newspaper, the UK decision to nearly double its carbon floor price - which was introduced in 2012 - from £9.54 to £18.08 per tonne of CO2 will raise the overall price on carbon to £23 ($44.55), when EU ETS allowances are factored in.

Analysts said the floor price hike would force a switch from coal to gas, with Reuters Thomson Point Carbon telling The Guardian up to 20TWh of coal generation could be replaced with gas while Agency Partners said some coal plants could be mothballed for the northern summer.

Meanwhile, new figures from European Commission showed greenhouse gas emissions under the EU ETS fell by 21% compared to 2005 levels last year, six years ahead of schedule, the newspaper reports, and against a 1.3% rise in GDP.

source: http://www.theaustralian.com.au