German Energiewende destroys capital – NZZ

Germany’s approach to exiting coal-fired power generation via a phase-out plan suggested by a stakeholder commission will cost the country more than necessary, Christoph Eisenring writes in the Swiss daily Neue Zürcher Zeitung. Rising prices from the European Union Emissions Trading System ensured that CO2 discharge was reduced where it was cheapest. Any forced closure of power plants would not help the climate unless the government was cutting emission allowances, which it could do more cheaply by buying them directly on the market, Eisenring argues. Compensations to power plant operators and support for industry in case of rising prices might drive the cost up further. “Climate action is certainly necessary, but Germany’s special approach is highly inefficient and costs therefore more than necessary.”