Italian carbon compensation to gas generators to lower European power prices, double domestic emissions

The Italian government approved measures to reduce electricity prices for consumers, including reimbursing EUA costs and part of gas transport tariffs for operators of gas-fired power generation. According to Veyt’s analysis, these measures could result in a 40 % decrease in power prices next year, doubling both gas generation and domestic power sector emissions. Across Europe, power prices could decrease by 10 % while emissions rise between 3-8 %.