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

• Launch Event: Extension of the CBAM Scope

  June 12 @ 15:00 - 17:00

• European Hydrogen Bank – Second Auction and Next Steps (Public Event)

  June 19 @ 10:30 - 12:30

• Launch Event – Future of emissions trading in the EU: CDRs

  June 26 @ 14:00 - 16:00

• Bioenergy with Carbon Capture and Storage in the EU: Challenges and Opportunities

  June 3 @ 15:00 - 16:30

• 2025 State of the EU ETS Report – Launch Event (Public Event)

  May 21 @ 15:00 - 17:00

• Stakeholder Roundtable – Future of Emissions Trading in the EU: Carbon Dioxide Removals (CDRs)

  May 12 @ 10:30 - 12:30