the Battle of coal versus hot, but the pace on various fronts is very different.
Almost two hundred countries have convened to agree on cutting carbon emissions. Finland aims to be carbon-neutral in 2045. The EU commission proposal to the final in a headlock from coal in 2050.
Everyone knows that a clear way to avoid carbon dioxide emissions, would be reducing coal burning. But despite all the demand for coal is increasing.
the demand of the situation told the coal prices on world markets: it has risen appreciably abundant of the two years.
Mikko Airikka | Yle
the World coal price is determined in practice in China.
in the World is consumed in a year about six billion tons of coal. That China accounted for half. China is coal’s largest producer, but its own production in addition, it brings the coal to about 200 million tons per year.
Like the attached picture, the price of coal has risen in recent years, but before it collapsed. And, as the coal market in general, the causes of price changes must be applied for from China.
China became coal importer
Fortum a leading analyst Vesa Ahoniemen according to the coal price decline is due to the fact that in China the central government wanted to stimulate the economy after the financial crisis and to give local governments freer rein in lending.
as a result, in 2008 coal mining in China gained new momentum, production volumes increased, and prices declined or even collapsed. Soon even the chinese mines shut down uneconomic “zombie-companies”.
cutting down Production in China eventually led to the fact that the country became a major buyer of coal in the world market. It has been driving prices up from march 2016 onwards.
Coal blackened the reputation ensure that the new production does not just come, even if the price would be better now than in a long time.
– Coal production increase is not politically acceptable, and the financial one is difficult, Ahoniemi said.
in China, the production cuts will also continue next year. It makes prices rise in the world market.
in a couple of years the price has more than doubled. In the spring of 2016, the carbon ton price fell 40 euro. Now let’s move over 80 million, and next year market to predict the abundance of 87 euro price.
coal February 2019 price forecast of the futures contract.Yle news graphics carbon number of prices in Finland
in Finland has reduced the rate of coal use in energy production, but still coal is Ahoniemen according to the ultimate price of the specifier here too. When the Nordic area is dry, your own water power is not enough and joudutu to rely on imports from Central Europe.
– If it is dry and little water power, our prices rise in the German price level. It means coal electricity marginal cost.
But if this is normal or a good water situation, we are so much lower. Then all the water produced electricity does not disarm to Germany, because export of contacts is not sufficient, Ahoniemi to figure out.
in Europe, coal use in energy production has been declining rapidly.
in the 2003-17 period with coal to produce electricity reduces the number of EU countries by almost a third.
coal-fired power is still especially emergency power use, but they offer the available power is now about one-sixth lower than the beginning of the millennium.
in the World eleteään coal use growing divide time.
Ahoniemen according to the “coal is going to be removed shortly,” the European energy market. Again Poland and Germany are the largest consumers. Also, emissions trading makes carbon more less profitable.
But at the same time, in Asia growth continued – despite the fact that, for example, in Indonesia, wind and solar could be the coal to cheaper energy sources.
Countries with underdeveloped electricity networks and markets may not be opened, can be difficult to reconcile renewable energy to the grid.
a – carbon of fate is divided in half, but have to believe that its consumption leaves very soon decline, Ahoniemi amount.
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