PP 33/19Indirect CO2 emissions compensation: Benchmark proposal for Air Separation Plants

This publication was reviewed in March 2019 and revalidated without modifications.

The Regulatory Environment Council of EIGA has identified potential risks of market distortion for the Industrial Gas sector in the European Union’s European Trading System (ETS) directive regarding financial compensation which may be granted by Member states to their national exposed energy intensive industries:

  • risk of not been deemed as an exposed energy intensive industry, contrary to other industry sectors using Industrial gases and operating on-site ASUs;
  • risk of multiple or inappropriate benchmarks for Air Separation Plant electricity consumption.

The purpose of Position Paper PP-33 is to propose a single Air Separation Plant benchmark that can be used in all EU industry sectors for the purpose of compensation of costs regarding Greenhouse gas emissions passed on electricity prices.

Position Paper PP-33 should be used by EIGA Members and Industrial Gas National Associations to advocate an equal treatment (equal financial compensation) between "industrial activities carried out in installations operated by a single operator and production in out sourced installations" (recital 23 of the ETS directive).

The EIGA Position Paper PP-33 may be circulated to members and non members.

The Position Paper PP-33 is supported by Briefing Note BN-11 Benchmarking: Air Separation Plants and Indirect CO2 Emissions.

This Briefing Note BN-11 provides additional information on how the proposed Benchmark figure is calculated. 

This Briefing Note BN-11 is for EIGA members only and should NOT be circulated to companies or organisations that are not EIGA members.  

It is available from the EIGA Members Area of the EIGA website.