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Low-Carbon Transition to Test Drax and RWE, Citigroup Says
2010-10-29 08:14:52.279 GMT
By Kari Lundgren
Oct. 29 (Bloomberg) -- Drax Plc, RWE AG and E.ON AG will
struggle the most in 2013 when European utilities need to buy
carbon permits to cover their emissions rather than being
allocated free certificates, according to Citigroup Inc.
"The pricing of carbon emissions under Phase 3 of the
European Union Emissions Trading Scheme will have a profound
impact on power generation companies in particular across
Europe," analysts including Meg Brown and Jennifer Anderson
said in an Oct. 27 note to investors.
Iberdrola SA and EDF Energies Nouvelles SA are among the
best-prepared for the transition to a low-carbon economy,
according to Citigroup's Climate Ranking, the analysts said. The
ranking of 30 energy generators and water utilities is based on
greenhouse gas emissions and a company's ability to deliver low
carbon energy services.
With coal accounting for all of its generation capacity,
Drax is the least aligned to a low-carbon economy, the analysts
said, adding that replacing coal with biomass would "trigger a
rapid rerating of the company within the sector."
For Related News and Information:
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--Editors: Alex Devine, Todd White.
To contact the reporter on this story:
Kari Lundgren in London at +44-20-7073-3442 or
klundgren2@bloomberg.net
To contact the editor responsible for this story:
Will Kennedy at +44-20-7073-3603 or
wkennedy3@bloomberg.net.
