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Issues and options for the revision of the state aid guidelines in the context of the EU ETS
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
ERCST is preparing an issues and options paper on how indirect EU ETS costs could be dealt with by the new guidelines. This meeting is part of a series of meeting on state aid guidelines and indirect costs compensation, which started with a discussion with stakeholders on January 31, and will continue throughout the year with the next meetings planned on May 8 and September 19. The final paper will be released in the Autumn of 2019.
During this meeting, ERCST will present its views on the most important issues linked to the revision of the state aid guidelines, and raise some issues and options for discussion. This will be followed by panel discussions on how indirect costs should be dealt with by the state aid guidelines.
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Event Material(s)
Agenda
Presentation by ERCST – Revision of the State aid guidelines
Presentation by BDI
Presentation by Eurometaux
Presentation by France
Presentation by Heidelberg Cement
Presentation by Hydro
Presentation by Statkraft
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