Stockholm has shut its last coal-fired power plant in a watershed moment for Europe's move away from fossil fuels.

Energy company Stockholm Exergi, co-owned by the Stockholm council and Finnish energy giant Fortum, has mothballed the plant at the giant Värtaverket site in the eastern part of the city.

The move will slash Exergi’s annual emissions from around 800 thousand tonnes of CO2 to around 400 thousand tonnes.

The plant, which has supplied Stockholmers with heat and electricity since 1989, was supposed to be shut in 2022 but is closing earlier than planned.

More energy from a biofuel plant at the Värtaverket site means the coal plant can be closed with no impact on supply.

Chief executive Anders Egelrud said: “Our goal is for all our production to come from renewable or recycled energy.

“This plant has provided the Stockholmers with heat and electricity for a long time, today we know that we must stop using all fossil fuels, therefore the coal needs to be phased out and we do so several years before the original plan.”

Exergi had already closed one of the coal plants but decided to keep one open as back up.

The mild winter has meant there is no use for the remaining site so it has been shut.

Over 800,000 Stockholmers get their energy from Exergi.

Stockholm's Vice Mayor of Environment Katarina Luhr said: “The fact that the coal is now being phased out of the city's district heating system will be of great benefit to Stockholm's climate work and it will significantly reduce our emissions.

"It also means that Stockholm can show the way for other cities - towards creating a fossil-free society.”

The European Commission has made climate change a major political priority with ambitious targets to reduce emissions to net zero by 2050.