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Market development

Global economic growth slowed in 2012 and Europe’s economic situation was weak; development in Russia was steadier. The integration development of Europe’s energy markets regressed due to the strengthening of national interests.

European power generators have committed to a challenging target to reduce carbon dioxide emissions, but the uncertainty of the regulatory environment is hampering progress in the desired direction.

In 2012, instead of European energy market integration, the strengthening of national interests led to an increase in subsidy systems, unforeseeable changes and overlapping cumulative effects that are inconsistent with the European energy and climate policy. At the same time, the oversupply of emission allowances and low prices undermine the functioning of the emissions trading system. In fact, an investment survey of European electricity companies indicates that the increase of political risk is considered the biggest obstacle to investments.