Decarbonisation through coal phase-out in Germany and Europe — Impact on Emissions, electricity prices and power production

Abstract

Coal power accounts for a major share within electricity production and significantly contributes to the overall greenhouse gas emissions in many European countries. According to official reports, Germany will not achieve its emission reduction targets in 2020. Therefore, a shut-down of coal capacities is currently being discussed and a plan is developed by the so-called Coal Commission.In this study, we analyse the effects of a national coal phase-out policy on carbon emissions and prices, and compare these to the effects of EU-wide coal phase-out policies. Considering high CO2 certificate prices and ambitious renewable energy targets, a coal phase-out in Germany would have a minor additional impact on overall European emissions. An EU-wide coal phase-out however, would significantly reduce the emissions, by around 19%. Alternatively, a very high CO2 certificate price policy provides an even greater reduction in CO2 emissions.