ETS State Aid Guidelines
The European Commission is due to extend ETS-linked state aid to 20 new sectors, including batteries, rubber and fertilisers. More energy-intensive industries could be eligible for state aid to help offset the indirect costs of the EU’s carbon market (ETS), under a draft amendment to Commission guidelines. If the draft is approved, 34 sectors would be eligible for compensation for a rise in electricity prices, up from the current 14. Newly eligible industries include batteries, glass, rubber, fertilisers, ceramic tiles and textile fibres. The guidelines run until 2030 and allow member states to compensate the newly eligible sectors as of 2025. “The combined effect of high energy prices and the rise in emission costs” has increased the risk of carbon leakage when companies offshore production to places with laxer rules, the Commission said. It consulted on the plans over the summer. On 18 November, EIGA addressed a letter to the Commission, asking for the likes of oxygen and nitrogen to be added to the list; the draft does not include them.
The rationale of our request is available in our COM14.
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