Germany had announced the plan to close down all of its power plants by 2022 recently. However, analysts said on Tuesday that this move will lead to increased carbon dioxide emissions in the tune of 40 mil tons as a result of the country depending more on fossil fuels as part of the nuclear abandonment plan.
This extra increase of Carbon emissions would then give impetus to the demand for carbon permits under the trading scheme of the European Union. This will lead to higher pollution costs as well as carbon prices in the entire European Union.
Amrita Sen, Capital Analyst at Barclays stated that the German Coal burn will display a pick up of sorts. Coal burn would be supported on a greater level this year, although more gas and renewable energy will be used in the longer run.
This phase out of nuclear plants is seen as more of a political move rather than one backed by much of technical backup. Angela Merkel is seen as capturing anti nuclear sentiment that has increased as a result of the Fukushima disaster in Japan.
The shift was welcomed by environmentalists, although a faster phase out was demanded by some. It is also hoped by environmentalists that shifting to renewable energy would be faster as a result of this.
Analysts are of the view that there is the likelihood of an increase in the planet warming green houses gases which are equivalent in measurement to the total emissions of Slovakia. This will happen as Germany uses coal and gas so as to plug the power generation gap. Both these fossil fuels will emit much more carbon than nuclear power.