Insights > Analysis > DATA DIVE: Fuel switching keeps support for EU carbon in face of looming recession, political intervention risks

DATA DIVE: Fuel switching keeps support for EU carbon in face of looming recession, political intervention risks

Published 17:45 on March 9, 2026 / Last updated at 15:15 on March 13, 2026 / , and / EMEA (Compliance Markets & Taxes, Europe), Insights (Analysis, Data Dives), Net Zero Transition (Industrial Decarbonisation, Power/Electrification)

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EU coal-fired power is set for a boost in 2026 and should maintain demand for EUAs even while global recession fears mount and Brussels mulls political intervention in the bloc's ETS, as surging natural European gas prices due to war in the Middle East have weakened that fuel's electricity generation margins, according to profitability spreads and market analysts.
EU coal-fired power is set for a boost in 2026 and should maintain demand for EUAs even while global recession fears mount and Brussels mulls political intervention in the bloc's ETS, as surging natural European gas prices due to war in the Middle East have weakened that fuel's electricity generation margins, according to profitability spreads and market analysts.


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