German nuclear cull to add 40 mln tonnes CO2/yr

Tue May 31, 2011 1:04pm GMT
 

* Germany to shut all nuclear plants by 2022

* Will add 400 mln tonnes CO2 emissions through 2020

* Small rise expected in carbon prices

By Nina Chestney and Jackie Cowhig

LONDON, May 31 (Reuters) - Germany's plan to shut all its nuclear power plants by 2022 will add up to 40 million tonnes of carbon dioxide emissions annually as the country turns to fossil fuels, analysts said on Tuesday.

The extra emissions would increase demand for carbon permits under the European Union's trading scheme, thereby adding a little to carbon prices and pollution costs for EU industry.

"We will see a pick-up in German coal burn," said Barclays Capital analyst Amrita Sen. "Longer term, they will be using more renewables and gas but this year and next, we should see a lot of support for coal burn."

The phase-out is seen as more political than technical as German Chancellor Angela Merkel tries to capture anti-nuclear sentiment in the aftermath of Japan's Fukushima crisis.   Continued...

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