Explainer: Carbon strategies of EU utilities

In an emissions trading scheme driven largely by power sector demand, how do the buying habits of some of Europe's biggest utilities – and emitters – affect EU carbon prices?

LONDON(Reuters) - European Union carbon prices are struggling to recover from a record low below €7 a tonne, hit late last year as worries about the economy and an oversupply of carbon permits eroded demand.

Power and heat generation account for some 60 per cent of the carbon dioxide emissions in the EU Emissions Trading Scheme (ETS), which means power sector demand for carbon permits, called EU Allowances (EUAs), largely drives the price.

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