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Public consultation on ETS state aid guidelines

From 14 January 2020, citizens, organisations and public authorities have been asked to contribute to the public consultation on the draft ETS state aid guidelines. 

The consultation will be open from 14 January 2020 until 10 March 2020.

In line with the European Green Deal communication, the draft EU ETS state aid guidelines aim to reduce carbon leakage risk related to indirect ETS costs and incentivising the modernisation of production processes.

Member states can partly compensate indirect emission costs faced by industrial sectors due to the EU Emissions Trading System (ETS) as long as this is in accordance with the guidelines on state aid measures in the context of the EU ETS.

Current guidelines will expire on 31 December 2020. They therefore have to be revised for the next trading period starting on 1 January 2021.

The purpose of the consultation is to gather feedback from all interested parties on the draft new ETS guidelines before their adoption in the course of 2020. In particular, interested parties should assess whether the draft guidelines are well designed to address the risk of carbon leakage due to indirect emission costs (notably as regards the eligible sectors for compensation), while preserving the incentive of the ETS for a cost-effective decarbonisation of the economy and minimising competition distortions in the internal market. 

You may find the consultation and more information here.

Should you have any questions, do not hesitate to contact martina.dipalma@eraa.org