The state aid guidelines for indirect costs compensation in the EU ETS 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 held two consultations, a public one and a targeted one. Subsequently, on the 14th of January it published the draft guidelines, which are subject to a 8-week public consultation period, ending on March 10.
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. This meeting has the intention of discussing the draft guidelines with EU stakeholders, providing space for various stakeholders to present and discuss their submissions to the public consultation.

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Workshop Material(s)
Agenda
ERCST presentation
W. Stoefs (CMW) presentation
J. Delarue (ClientEarth) presentation
 
Upcoming Events

• Focus Group: Green Claims Directive (GCD) trilogues – How does the GCD connects with (Voluntary) Carbon Markets?

  January 21 @ 10:00 - 11:30

• Paper Launch – Unlocking CO₂ Storage Opportunities Outside the EU – Policy Challenges and Business Prospects

  January 28 @ 15:00 - 16:30

• Second Stakeholders and Member States Consultation – Implementation and transposition of hydrogen regulations in the EU Member States

  January 30 @ 15:00 - 17:00

• Stakeholders Consultation: Green Claims Directive (GCD) trilogues – How does the GCD connects to (Voluntary) Carbon Markets?

  February 5 @ 10:00 - 12:00

• Stakeholder Roundtable – Future of Emissions Trading in the EU: Price Signal and Competitiveness

  February 6 @ 10:00 - 12:00

• Stakeholder Roundtable: 2025 State of the EU ETS Report

  December 17 @ 10:00 - 12:00

• Future of Emissions Trading System in the EU: Role of Emissions Trading in EU Climate Policy – Launch Event

  December 12 @ 11:00 - 13:00

• Stakeholder consultation – CO₂ Storage Beyond the EU: Regulatory Barriers and Business Opportunities

  December 11 @ 15:00 - 16:30