German Reserve for Dirty Coal Plants Seen Hurting Carbon Demand

  • Germany needs more measures to cut CO2, former official says
  • EU carbon price too low to help nation meet 2020 target
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Germany’s plan to place lignite-burning power plants into a reserve from later this year may cut demand in Europe’s carbon market, according to a former government official.

The 1.6 billion-euro ($1.8 billion) coal reserve may reduce demand for carbon allowances because it would lower total emissions and trim the need for utilities buying permits in advance, Franzjosef Schafhausen, a former director-general for climate policy, European and international policy at the nation’s environment ministry, said Thursday in an interview at Carbon Expo in Cologne, Germany.