The German coal commission has agreed on a final report providing a detailed timeline for the phase-out of hard coal and lignite capacities. The report reveals that the capacities are due to be taken off line in three stages, with a full phase-out scheduled for 2038.
ICIS power and carbon analysts have run multiple scenarios of phase-out paths using the ICIS Power Horizon tool to simulate the effects on German power prices and the European carbon market.
These presentation slides cover important questions in the market, including how many carbon allowances can be cancelled in order to compensate for the effect of the coal-phase out.