European Union (EU) carbon prices could more than double to €40 per tonne between 2019 and 2023, spurring the transition away from coal power across the bloc. That is according to a new report from think-tank Carbon Tracker, which claims that carbon prices are set to rise even faster than previously anticipated, rendering the majority of the EU’s coal and lignite power plants unprofitable. Reforms to the EU Emissions Trading System (ETS) cap-and-trade approach have already seen the price of carbon increase more than threefold from €4.38 per tonne in May 2017 to €18.28 in August 2018. By the end of the year, the price is expected to reach €25. Carbon Tracker’s latest analysis, published today (21 August), predicts that carbon prices will average between €35 and €40 per tonne over the next five years.

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