Coal Power in Poland Faces ‘New Reality’ as Carbon Cost Soars

After carbon-dioxide prices hit a 10-year high last week, Poland’s coal-burning utilities are starting to feel the heat.

Carbon futures in Europe’s Emissions Trading System have soared to more than 20 euros ($23) a ton in a bull run that has seen them gain more than five-fold in just over a year. The jump means utilities in Poland must pay more to burn coal, which provides about four-fifths of the nation’s power, and makes zero-emission renewable sources look more attractive.

“With CO2 prices at 20 euros a ton we live in a new reality,” Marek Wadowski, chief financial officer of ...