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Europe turns away from coal, new report finds

Coal generation in Europe is being phased out and will continue to do so due to competition from cleaner energy sources, such as natural gas and renewables, as well as governments efforts to cut emissions, according to a new study by The Economist Intelligence Unit (EIU).

The UK is leading the way when it comes to reducing coal dependency, helping to put coal's share of power generation in Europe to well below 25%. According to the report, market conditions and policy factors in both the European Union and the UK will continue to make it difficult for coal to maintain its share of generation in the continent going forward.

The study acknowledges that the use of the fossil fuel use in the power sector did increase in Europe in the first few years of the decade, but says it was a temporary phase and the longer-term trend of gradual decline in the region has resumed.

The trend is more obvious in some countries than in others. While coal still accounts for about 25% of EU power generation, its share of total generation is highest in some east European economies, such as Poland (where it accounts for more than 80% of generation) and the Czech Republic (50%)