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Indirect costs compensation in the EU ETS – revision of the State Aid Guidelines
January 16 @ 10:00 am - 12:30 pm
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.