China’s coal dependency raises hedging costs for Europe

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Analysts warn that European companies will face higher costs in the immediate future as China's soaring appetite and dependency on cheaper and dirtier fuel such as coal will mean countries participating in the Kyoto Protocol will be paying more to meet carbon emissions hedging and compliance requirements.

"This is clearly not a level playing field," says David Hunter, energy analyst at energy consultancy M&C Energy Group. "In the UK, businesses are carrying the financial burden to support the

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