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Indirect costs compensation in the EU ETS – revision of the State Aid Guidelines
The state aid guidelines are up for revision – not review – which means that they could change significantly. The current guidelines expire on 31 December 2020, and the new guidelines would ‘indicatively’ be ready by Q3 2020 – just a few months before the new ones actually enter into force.
The new state aid guidelines will need to balance a number of issues, among which:
- carbon leakage risk
- risk of overcompensation and potential windfall profits
- risk of internal market distortion
- how to incentivise cost efficient decarbonisation
In 2019, the European Commission launched two consultations, a public one and a targeted one, on the revision of the ‘Guidelines on certain State aid measures in the context of the greenhouse gas emission allowance trading scheme post-2012’.
ERCST has actively engaged on this topic, organising a series of meetings on state aid guidelines and indirect costs compensation, and responding to the first public consultation. The next step in the process is the publication of the draft guidelines, which is expected to be published by the end of 2019. This meeting has the intention of discussing the draft guidelines with EU stakeholders.
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Workshop Material(s)
Agenda
ERCST presentation
Presentation by R. Vermeeren, European Commission
Presentation by C. O’Donoghue, Eurometaux
Presentation by R. Batier, Cerame-Unie
Upcoming Events
International Townhall: EU CBAM Circumvention Risks & Resource Shuffling
October 30 @ 15:00 - 17:00Omnibus Simplification Package – Preparing for Trilogues
November 5 @ 15:00 - 17:00Paper Launch – Bridging the CDR funding gap: design options and policy choices
November 25 @ 15:00 - 16:30Launch event – Towards a comprehensive hydrogen infrastructure – Assessing progress and addressing gaps
December 11 @ 15:00 - 17:00Stakeholder Roundtable: 2026 State of the EU ETS Report
December 16 @ 10:00 - 12:00
Past Events
ERCST & Veyt 2026 Review of the EU ETS and MSR: Whitepaper Launch Event (Public)
October 29 @ 09:30 - 11:30Launch Event: EU CBAM Circumvention Risks & Resource Shuffling
October 22 @ 15:00 - 17:00Stakeholder Roundtable – Future of the EU ETS: EU ETS – CBAM Strawman
October 21 @ 14:00 - 16:00
