Phasing Out Coal Power

The Netherlands has expressed a desire to end coal power by 2030, marking the beginning of the end for coal power plants in the European country.

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The decision came from the new Dutch government earlier this week, which also announced plans to ban all petrol and diesel-powered cars by the same year. As reported by Megan Darby of Climate Home, the Netherlands will close all coal power plants by 2030, which includes three plants made in 2015 that are said to be more efficient that others. Despite their better performance, however, they quickly started to decrease in value in 2016.

In addition to phasing out coal, the Netherlands will also set a carbon floor price and seek deeper carbon cuts to make sure coal's elimination doesn't make it cheaper for companies to use coal elsewhere.

Making a Statement

In a report from the Institute for Energy Economics and Financial Analysis (IEEFA), IEEFA energy finance consultant Gerard Wynn said the government's announcement "sent a dramatic signal to electricity markets today that no investment in coal-fired power in Europe is safe."

Wynn continued, saying, "Today’s announcement highlights the risk of investing in either new or existing coal-fired power, and the lesson is clear: National coal phase-out plans such as this, combined with the rise of renewables and the impact on demand of improved efficiency, put old electricity-production models at risk."

In September, the Netherlands Environmental Assessment Agency (NEAA) revealed new information that showed how global carbon dioxide (CO2) emissions remained unchanged in 2016. While this was a positive sign that people can prevent additional changes to our climate, the Netherlands wants to do better, hence its new goal to reduce emissions in the country by 49 percent, as well as increase the larger EU's emissions goals from 40 percent to 55 percent.

"Failing that," writes Darby, "the coalition said it would seek to agree [to] stronger action with 'likeminded' countries in northwestern Europe, to minimize any competitive disadvantage from tougher targets."


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