Theoversupplied EU ETS represents a major headwind for the European renewablessector at present, providing little incentive for utilities to abandon fossilfuel plants in favour of wind and solar.
Thecollapse of carbon prices within the EU ETS has been a major source of headacheand embarrassment within Europe’s climate strategy. Recent moves to prop upprices – such as the “backloading” proposal, which seems likely to beimplemented – will have little long-term impact.
However,
