| By Petra Sorge Germany, long the European Union’s biggest greenhouse gas emitter, is phasing down coal faster than expected. The country’s energy regulator announced this week that it won’t need to order the shutdown of any coal-fired power plants for a second year in a row, because operators are already voluntarily switching off unprofitable units. The news is providing the latest evidence that Europe’s carbon pricing regime is helping to reduce emissions across the bloc. Under the EU Emissions Trading System, utilities must buy CO2 allowances, which have traded between €60 ($69) and €84 ($98) a metric ton this year, and are now about €74. Those costs have squeezed margins for coal stations. Since 2020, Germany has shut about 8.2 gigawatts of coal capacity “as mounting pressure from carbon prices rendered these plants uneconomic,” said Kesavarthiniy Savarimuthu, head of European Power Markets at BNEF. Another 3 gigawatts of the country's coal capacity are slated for closure within the next five years as rising emissions costs continue to weigh on coal plant profitability, she added. Yet at least 23 gigawatts of coal power still remain active in Germany’s energy mix, with a government phaseout target not scheduled until 2038. A previous German government’s pledge to bring that forward to 2030 hasn’t been repeated by current Chancellor Friedrich Merz’s administration, which has frustrated climate campaigners.  A lignite coal-fired power plant, in Peitz, Germany, in 2023. Photographer: Krisztian Bocsi/Bloomberg The picture is complicated by energy security. Coal was ramped up to help Germany through the energy crisis kicked off by Russia’s curtailment of pipeline gas in 2022. It has also seen a boost earlier this year during several windless periods, when wind farms produced less power. And during the winter — when less favorable weather conditions meet higher energy demand — coal generation will likely again see an increase, said Nicolas Leicht, energy economist at energy think tank Aurora Energy Research. At the same time, the last several months have seen a steep decline in natural gas prices, which now have reached a level close to the time before Russia’s attack on Ukraine in 2022. “That’s making gas-fired power plants more profitable, compared to coal stations,” said Leicht. Renewables are expanding at speed: In the first six months of the year, 2.2 gigawatts of onshore wind turbines were taken online, a pace not seen since 2017. Solar deployment is accelerating too, helped by fast-track permitting. In August, the share of coal-fired electricity produced in Germany reached its lowest level in over 60 years, according to the think tank Fraunhofer Institute for Solar Energy Systems ISE. Yet the declining coal trend is also connected to overall shrinking power demand in a country that still grapples with a stagnating economy. There are worries that rising carbon prices will only add to other costs of doing business in Germany. Michael Vassiliadis, the head of the mining, chemical, and energy trade union IGBCE, said at a press conference last week that energy-intensive industries should get a reprieve on having to buy as many CO2 certificates because the situation is “killing our businesses.” He was echoing a similar demand from steelmaker ThyssenKrupp. The government faces a dilemma. Creating exceptions and loopholes in the emissions trading system would not only penalize companies that invested in cleaner processes., but it would also blunt the very price signals pushing coal off the grid. It could also create volatility, with coal plants bouncing back whenever carbon costs ease. Another uncertainty is security of supply. Germany shuttered its last nuclear stations two years ago and still lacks firm back-up capacity for dark, windless days. Plans to build a new fleet of gas-fired power stations are sparking warnings from climate activists that this would simply create a new fossil fuel dependence. However, delays on new capacity also make it “less feasible” that all coal-fired power plants can be taken off the grid in time for Germany’s 2038 deadline, according to Aurora analyst Leicht. For Europe, the German case is instructive. Carbon pricing and cheap renewables are proving effective market levers to drive out coal. But the lack of a reliable and ready backup, along with political and industrial pressures, could keep coal plants in operation longer than expected -- casting doubt on whether market forces alone can get Europe’s biggest carbon polluter in line with the bloc’s broader climate ambitions. Read more on this story on Bloomberg.com. Centrus Energy Corp.'s facility in Ohio is large enough to house 11,000 centrifuges, the machines that create nuclear fuel. Right now, there are just 16 spinning away to produce a type of next-generation enriched uranium. But the remaining space could eventually be filled with many more. Rising interest in nuclear energy from both the Trump administration and consumers — notably power-hungry tech companies trying to compete in artificial intelligence — is spurring dozens of companies in the US to develop innovative, advanced reactor designs. Many of those prototypes will require Haleu, or high-assay low-enriched uranium, and that's where Centrus comes in. Haleu supply is currently limited, and demand even more so, but that may be beginning to change. Haleu is critical for advanced reactor designs, and Centrus is the only US company approved to make it. The question now for Centrus is when to invest in expanding production. The Energy Department announced support for 11 advanced reactor pilot projects this month, including the Radiant test system, and many of them will require Haleu. But pilots are typically one-off projects that don’t always translate into long-term sales contracts that might justify a major investment in production capacity for Centrus. What will it take to turn Centrus’ empty halls into a cornerstone of America’s nuclear future? Read the full story on Bloomberg.com.  A view inside the Centrus facility in Ohio. Photographer: Jed Rosenberg/Bloomberg Coal India Ltd. has sought bids to build 5 gigawatts of renewable projects. The world’s largest producer of coal is looking to diversify its portfolio in view of a possible decline in future demand of the commodity. A group of private investors have launched the All Aboard Coalition to help address the fundraising challenge of climate tech startups on the brink of commercialization. Denmark is targeting as much as 10 billion kroner ($1.56 billion), in what looks set to be the first sovereign green bond to be aligned with the European Union’s new standards. | 
