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EU ETS State Aid with Power to Boost the GO Market

Monday, 22 August 2022

Kevin Lim

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On 19 August 2022, the EC approved State aid for three members to assist industries with high energy costs associated with indirect emissions. The list of countries with approved schemes now stands at five, with more to come.

The aid should partially compensate energy-intensive operations whose costs have increased due to rising carbon prices under the ETS. The measures are aimed at reducing the risks of 'carbon leakage', where operations move outside the EU to jurisdictions with lower costs associated with carbon emissions, ultimately leading to lower economic activity within those EU member states with no overall improvements in global emissions reductions.

Eligible companies can receive by default a maximum of 75% of the costs of their indirect emissions, with the following important provisos:

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