Coal in Europe is approaching $ 100

Coal prices in Europe are on track to exceed US $ 100 per tonne, the highest level since 2013, as China's demand for electricity attracts more cargo of the dirtiest fossil fuels.

China is the world's largest coal-consuming country. Its demand for fuel cargo at major coal sites in the Atlantic Basin has driven prices higher since late March.

The power of coal in Europe is even more surprising given that governments across the continent are working to shut down power plants that use fuel, emphasizing commitments to tackle greenhouse gas pollution. German Chancellor Angela Merkel has appointed a group to advise her when the country can close all coal facilities, and the UK plans to close the last of its plants that use the fuel by 2025.

Coal prices in Europe have risen to 10 percent this year and the next psychological barrier of US $ 100 is now breached within "a few weeks," according to Hans Gunnar Navik, senior analyst at StormGeo AS. The goods reached $ 93.75 per ton on August 30, and the quarterly contract rose to $ 99.55 per ton the day before.

“Coal prices can rise in long-term trends and be sustained longer,” Navik said. "However, we see China's economic growth and domestic coal production as the most decisive driver."

China's electricity demand could rise by as much as 7.6% this year. While China is working to reduce the proportion of coal in its generated mix to 34% by 2050, its fuel needs have been strong in recent years to feed its booming economy.

China is also attracting more LNG cargo, diverting these vessels from Europe and driving up gas prices around the world.

Fossil fuel emission costs are also on the rise in Europe, driven by the European Union's efforts to cut surplus benefits since the last recession. Carbon is currently trading near its highest level in a decade after breaking the € 20 /t level. Higher carbon prices increase the cost of using fossil fuels, especially coal, which produces most of the greenhouse gases.