The European Commission is acerating state aid for energy-intensive industries like steel and chemicals to prevent their relocation outside the EU, mainly as CO2 certificates prices increase, affecting competitiveness.
Brussels — The European Commission is permitting more state aid for energy-in depth industries to dissuade corporations from moving overseas.
Sectors that already obtain assist, including the steel and chemical industries, may also be eligible to obtain more state aid, the commission declared in Brussels on Tuesday.
Particularly, the so-referred to as electricity price compensation will be extended. This will in a indirectly relieve corporations of the costs of CO2 emissions trading.
The prices for so-called CO2 certificates in EU emissions trading have increased in this years. The certificates are an tool for pricing greenhouse gas emissions to motivates reductions.
The commission mentions the price rises pose the risk that more energy-extensive industries will transfer their manufacturing to nations outside the EU that have lower emission restrictions.
There is likewise a fear that imports which can be more dangerous to the climate will replace EU products, which the commission mentions “leads to much less economic activity in the EU and does not decrease greenhouse gas emissions globally.”
In reaction to the rise in the price of greenhouse gas certificates, different industries along with ceramics, glass and batteries are now also to be eligible for assist.
For current industries, the most subsidy will also boom from 75% to 80% of indirect electricity costs.
At the same time, large recipients of aid should make investments a part of the money in ventures that contribute to decrease the costs of the electricity system.
