State Aid Guidelines and the EU ETS: indirect costs

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State Aid Guidelines and the EU ETS: indirect costs

January 31 @ 09:00 - 10:30

The ‘Revision of the Guidelines on certain State aid measures in the context of the GHG allowance trading system post-2020’ is well underway, and is set to be finalised by the Autumn of 2020. The guidelines are up for a total revision – meaning that all aspects and implementation of in are up for revision this year. This includes bringing the guidelines into line with the EU ETS Phase 4 Directive, but also the more politically sensitive topic of indirect cost compensation. 
The European Commission has indicated that the criteria for sectors to be eligible for indirect cost compensation could be changed – and therefore the list of sectors that can apply for compensation under national schemes. Also up for revision is the maximum amount of indirect cost compensation for eligible installations and the emission intensity of electricity production (the so-called regional CO2 factors) used to determine that amount. The revision could not only revisit current rules for indirect cost compensation, but also add new ones if necessary, for example the need for installations to invest in energy efficiency. 
ERCST is setting up a brainstorming session to allow stakeholders to discuss their priorities for the revision of the state aid guidelines, and to explore options and packages that mitigate carbon leakage risk while not leading to windfall profits. This is a first session in a longer-term effort that will continue in throughout 2019. 
For more information, please contact Domien Vangenechten at dvangenechten@ercst.org
 
Workshop material(s)
ERCST Call – Revisison state aid guidelines
 

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