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

• Reaction to EU ETS Review Proposal

  July 23 @ 14:00 - 16:00

• Stakeholder Meeting: Proposal for Permanent CBAM Exports Solution

  July 27 @ 15:00 - 17:00

• Review of EU ETS: Funders Meeting on Reaction to EU ETS Proposal

  August 27 @ 15:00 - 17:00

• Reaction to EU ETS Review Proposal

  September 7 @ 15:00 - 17:00

• Informal Dialogue on Article 6

  September 9 - September 11

• Managing the EU ETS for Decarbonization – Stakeholder Meeting

  July 1 @ 15:00 - 17:00

• Integrating International Carbon Markets into EU Climate Policy and Action

  June 26 @ 09:30 - 11:30

• International Townhall: CBAM in an International Context

  June 23 @ 14:30 - 16:30