Decarbonization · Power — coal

Decarbonizing power — coal: the honest pathway

Q: How much carbon cost does coal power carry?

≈€73/MWh at €77/t — which is why EU coal runs mainly when gas spikes or reserves are called. Non-EU coal fleets face the same math as prices spread.

Q: Is efficiency on old coal worth it?

Only fast-payback items — and insulation/steam-path refits are exactly that: <1-year returns on a large loss base, valid even with 5 years of life left.

Q: Does CBAM cover electricity?

Yes — physical imports into the EU grid. Coal-heavy neighbours exporting power to the EU pay embedded carbon at the border.

Coal power is the carbon price's primary target: ≈€73/MWh of carbon cost at €77/t inside the EU has already pushed coal behind gas and renewables in merit order. Where coal still runs — reserves, heat supply, non-EU grids — efficiency per MWh is the only near-term lever.

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Cost exposure

What one MWh carries, 2026 → 2034

Year	Free allocation (EU)	Payable carbon cost	Annual bill (per 1,000,000 MWh)
2026	97.5%	€1.84 / MWh	€1,838,250
2030	51.5%	€35.66 / MWh	€35,662,050
2034	0.0%	€73.53 / MWh	€73,530,000

At EUA €77.4 (11 Jun 2026) and ≈0.9–1.0 t CO2/MWh (subcritical-supercritical; full ETS). EU ETS industry schedule; exporters under CBAM follow the mirrored phase-in. Power sectors pay 100% from day one.

⬇ This table + pathway (CSV)🖨 PDF for management

The pathway, ranked

Reduction measures for power — coal

Efficiency recovery: boiler, steam path, insulation−3%

Biomass co-firing−20%

Retirement/conversion to reserve−100%

CCS retrofit−90%

Heat offtake (CHP) for districts−15%

Indicative reduction potential of each measure against the relevant emissions share (sources: IEA industry roadmaps, sector associations — see each measure page). Measures stack but don't simply add.

The fast tonnes

Heat losses you can cut this budget year

On plants with a defined remaining life, only fast-payback measures clear hurdle: steam-path and boiler-house insulation refits routinely return <1 year on coal units because the loss base is enormous. Each 1% efficiency ≈ −10 kg CO2/MWh ≈ €0.8/MWh at EU prices.

Method: ASTM C680 / ISO 12241 surface energy balance — the same engine as our public calculators. Typical removable-insulation effect across hot-process plants: 2–5% of fuel-related CO2, payback up to 2 years.

Context

How power — coal compares (t CO2 per unit)

Hydrogen production9 t/t H2

Ammonia & fertilizers2 t/t NH3

Steel — BF-BOF (integrated)1.9 t/t steel

Aluminium1.6 t/t Al

Lime1.2 t/t lime

Petrochemicals1 t/t HVC

Power — coal0.95 t/MWh

Cement0.7 t/t cement

Direct-emission intensities, typical published values per industry page — units differ by product; see each page for sources.

FAQ

Power — coal & carbon, answered

How much carbon cost does coal power carry?

≈€73/MWh at €77/t — which is why EU coal runs mainly when gas spikes or reserves are called. Non-EU coal fleets face the same math as prices spread.

Is efficiency on old coal worth it?

Only fast-payback items — and insulation/steam-path refits are exactly that: <1-year returns on a large loss base, valid even with 5 years of life left.

Does CBAM cover electricity?

Yes — physical imports into the EU grid. Coal-heavy neighbours exporting power to the EU pay embedded carbon at the border.

How this page is built: heat-loss figures follow ASTM C680 / ISO 12241 (the method behind our public calculators); facility emissions from Climate TRACE & EU ETS verified data across 30,000+ industrial sites; the 2026–2034 schedule is Regulation (EU) 2023/956, not a forecast. Published by Inzonex — manufacturer of modular removable insulation (UK Patent GB2508992.1). Spotted an error? Tell us — we correct on evidence.