OpenLobby.EU
Explore

Revision of the ETS State aid Guidelines

Competition

Member States can compensate some electro-intensive users, for part of the higher electricity costs resulting from the EU Emissions Trading Scheme. The objective of such compensation is to minimise carbon leakage risk, which materialises when emission costs cause relocation from the EU to third countries without comparable constraints. The existing rules allowing for compensation will be revised to ensure that they are adapted to the new Emissions Trading Scheme for the period 2021-2030.

Links

Public consultation

ID: 2041

Lobbying Activity

34 responses

Consultation response

Bundesverband der Deutschen Industrie e.V., 17 Jan 2019

Die Strompreiskompensation (SPK) ist für die von indirektem Carbon Leakage (CL) bedrohten ETS-pflichtigen Industrien essentiell im Hinblick auf den Schutz ihrer Wettbewerbsfähigkeit. Die SPK nach 2020 sollte so ausgestaltet sein, dass indirektes CL weiter so effektiv wie möglich verhindert werden…

Steel industry urges full compensation to prevent carbon leakage

The European Steel Association, 17 Jan 2019

The association demands that the steel sector remains fully eligible for financial compensation of indirect costs across the entire value chain. They oppose reducing aid levels over time or adding new conditions like mandatory energy efficiency investments.
This would maximize financial support to protect their competitiveness against rising carbon prices.
Environmental efforts may stall if aid is granted without efficiency commitments.

Finnish Forest Industries Urge Higher ETS Compensation Levels

Finnish Forest Industries Federation (Metsäteollisuus ry), 17 Jan 2019

The federation calls for flexible reporting thresholds and higher maximum compensation levels. They also oppose making aid conditional on new energy efficiency investment requirements.
Increased aid would help offset rising carbon prices and maintain industrial competitiveness.
Environmental groups lose a mechanism to ensure industries invest in energy efficiency.

Consultation response

WindEurope, 16 Jan 2019

WindEurope, representing more than 400 member organisations from the entire European wind energy value chain,welcomes the opportunity to answer this consultation. The EU ETS remains the central EU policy to regulate CO2 emissions and deliver effective transition signals. It is therefore…

FuelsEurope urges compensation for electricity costs under ETS

FuelsEurope, 17 Jan 2019

The refining sector should be eligible for compensation for indirect emission costs because it is exposed to carbon leakage risk and uses significant electricity. They want the same 0.2 threshold used for direct emissions applied to indirect costs, ensuring level playing field with other compensated sectors.
This would reduce disincentives to adopt electricity-based low carbon technologies like renewable hydrogen.
EU taxpayers fund subsidies that may enable refineries to avoid higher climate costs.

Consultation response

EUROMETAUX, 17 Jan 2019

Please see the attached document.

Consultation response

Ørsted A/S, 15 Jan 2019

Many thanks for the opportunity to provide feedback. The state-aid to compensate for indirect costs is important to keep industry and jobs in Europe. But it needs to be forward looking by enabling industry to source renewable energy. The Impact Assessment must therefore in addition to the listed…

Consultation response

Association Française des Entreprises Privées / French Association of Large Companies, 17 Jan 2019

General comments Direct and indirect emission carbon costs are both a result of the EU ETS Directive. They are equally harmful for competitiveness and investments, but they are treated differently. Direct costs are compensated through free allowances, while compensation for indirect costs remains…

European paper industry urges stable and full carbon cost compensation

Confederation of European Paper Industries, 17 Jan 2019

Cepi insists there be no differentiated treatment among exposed sectors regarding carbon leakage protection. They recommend using regional CO2 emission factors and argue that maximum compensation levels should not decrease.
Maintaining high compensation levels reduces electricity costs and protects the industry's international competitiveness.
Environmental objectives are undermined if compensation is not tied to mandatory energy efficiency improvements.

Consultation response

CEMBUREAU - The European Cement Association, 16 Jan 2019

The cement industry is not eligible for indirect compensation under the current Indirect Compensation State Aid Guidelines, despite the fact that the sector fullfils all conditions based on the currently available data. The cement industry was informed that, for the current trading period, the list…

Cerame-Unie demands compensation for indirect carbon emission costs

European Ceramic Industry Association, 16 Jan 2019

The association requests that all ceramic sectors receive compensation for indirect carbon costs. They also want eligibility extended to individual installations that are highly electro-intensive.
This would mitigate rapidly increasing electricity-related regulatory costs for ceramic manufacturers.

Consultation response

Vereinigung der österreichischen Industrie - Industriellenvereinigung, 16 Jan 2019

Please find the Federation of Austrian Industries' contribution attached. Kind regards

Consultation response

Verband der Chemischen Industrie e.V., 16 Jan 2019

Die Strompreiskompensation (SPK) bildet für die von Carbon Leakage bedrohte Chemieindustrie einen wichtigen Baustein zum Schutz der Wettbewerbsfähigkeit gegen indirekte Kostenbelastung aus dem Emissionshandel. Daher muss die zukünftige SPK auskömmlich, d.h. vollumfänglich, ausgestaltet sein. Für…

Consultation response

Plastics Europe, 15 Jan 2019

PlasticsEurope thanks the Commission for the opportunity to provide input to the stakeholder consultation on the revision of the “Guidelines on certain State aid measures in the context of the greenhouse gas emission allowance trading scheme post-2012 (2012/C 158/04)”. The Guidelines are of…

German steel industry demands full compensation for indirect carbon costs

Wirtschaftsvereinigung Stahl, 17 Jan 2019

The group asks for full compensation of electricity costs without gradual reductions. They also want industrial gases included and aid levels adjusted to match current production.
Lifting the aid limit would significantly reduce the financial burden of high electricity prices.
European taxpayers and governments will face increased costs from funding more generous subsidies.

Consultation response

European Association of Mining Industries, Metal Ores & Industrial Minerals, 17 Jan 2019

We believe that the main aim of the Guidelines on certain State aid measures in the context of the greenhouse gas emission allowance trading system post-2020 should be to safeguard an integrated approach to consistency, stability and predictability while ensuring a cost-effective decarbonisation of…

Consultation response

European Tyre & Rubber Manufacturers' Association, 16 Jan 2019

- Comments on the consultation process ETRMA, the European Tyre and Rubber Manufacturers' Association, welcomes the extensive public consultation foreseen by the European Commission and the targeted consultation of stakeholders and Member States. For the sake of transparency and for providing…

Consultation response

Norsk Hydro, 17 Jan 2019

Hydro is a global aluminium supplier with activities throughout the entire value chain, present in 23 European countries and with 35,000 employees globally. We welcome the review of the State Aid Guidelines for ETS indirect costs. Industries where product prices are set globally cannot pass on…

Consultation response

Aurubis AG, 16 Jan 2019

Please see feedback from AURUBIS AG in the attached document

Consultation response

ZVEI e.V. - Verband der Elektro- und Digitalindustrie, 16 Jan 2019

Im ZVEI-Fachverband Kabel und isolierte Drähte sind die Hersteller von Kabeln, Leitungen und Verbindungstechnik für die Bereiche Energie, Kommunikationstechnik und Automotive sowie die Hersteller von Lackdrähten in Deutschland organisiert. Im Bereich In Fachbereich Energie des Fachverbands sind…

Consultation response

EVONIK INDUSTRIES AG, 16 Jan 2019

Die Evonik Industries AG begrüßt die Revision der EU-Beihilfeleitlinie und die Anpassung der Vorschriften über den Ausgleich der indirekten Emissionskosten, um den Verschärfungen der Regeln des EU-Emissionshandels (EU ETS) für die 4. Handelsperiode zu begegnen, die die internationale…

European sugar industry seeks protection from high carbon costs

COMITE EUROPEEN des FABRICANTS de SUCRE, 16 Jan 2019

CEFS requests the Commission consider the sugar industry a key actor for state aid. They want better protection against carbon leakage risks through compensation for indirect costs.
This revision would offer sugar manufacturers new possibilities to offset rising electricity costs.

Consultation response

EUROALLIAGES, 17 Jan 2019

Please find EUROALLIAGES' feedback attached.

German metal industry urges stronger electricity price compensation

WirtschaftsVereinigung Metalle, 16 Jan 2019

WVMetalle wants to abolish declining compensation rates and allow states to cover 85% of indirect costs. They also reject tying aid to new energy efficiency requirements.
Higher subsidies would protect the competitiveness of energy-intensive companies against global rivals.
Environmental groups lose out as companies avoid mandatory energy efficiency improvements.

Consultation response

CEMEX, S.A.B. de C.V., 17 Jan 2019

Please see the attached file.

Consultation response

STARCH EUROPE, 17 Jan 2019

Starch Europe members welcome the proposal from the Commission to revise the Commission guidelines on certain State aid measures in the context of the greenhouse gas emission allowance trading system post-2020. The EU ETS impacts starch production installations in the EU, and the starch industry…

Consultation response

Federazione Imprese Siderurgiche Italiane, 17 Jan 2019

15 January 2019 COMBINED EVALUATION ROADMAP / INCEPTION IMPACT ASSESSMENT Revision of EU ETS State aid Guidelines FEDERACCIAI CONTRIBUTION TO THE CONSULTATION Compensation of indirect ETS costs, together with the recognition of free allowances for direct emissions, are both indispensable…

Consultation response

European Industrial Gases Association AISBL, 16 Jan 2019

EIGA welcomes the opportunity provided by the public consultation on the Inception Impact Assessment on the revision of the Guidelines on State Aid for Phase IV of the EU ETS. EIGA believes that the ETS State Guidelines are a necessary regulatory instrument complementing the ETS phase IV…

Metlen urges targeted state aid to protect European aluminium production

Metlen Energy & Metals, 16 Jan 2019

Metlen recommends a flat aid intensity of 85% and a cap on indirect costs. They also advocate for regional emission factors to reflect local market realities.
This would shield their smelting operations from rising carbon prices and international competition.
Companies not meeting the high electricity intensity threshold will receive lower compensation levels.

Spanish cement industry urges inclusion in state aid compensation

Agrupación de fabricantes de cemento de España, 17 Jan 2019

Align state aid eligibility with carbon leakage lists to include cement. Current rules cause unfair competition with materials like steel and wood.
Subsidies would reduce high electricity costs that burden the cement sector.
Steel and wood producers would lose their current relative market advantage.

Consultation response

Fédération belge des industries chimiques et des sciences de la vie, 17 Jan 2019

essenscia welcomes this consultation, which offers an opportunity to the chemical and life sciences industry to provide its view. Granting compensations for indirect emissions costs is the necessary complement of free allowances in order to safeguard the exposed sectors from carbon leakage. Indeed,…

Consultation response

Norsk Industri / Federation of Norwegian Industries, 11 Jan 2019

Norwegian power-intensive industry companies manufacture and develop materials with a low emission footprint that form the building blocks of a decarbonized Europe. They compete on global markets and are price-takers with no ability to pass additional costs on to customers without losing market…

Primary food processors urge inclusion in ETS state aid revision

Primary Food Processors, 16 Jan 2019

The organization requests the Commission include the vegetable oil industry in targeted sector assessments. They highlight that manufacture of oils and fats faces a significant carbon leakage risk.
Inclusion would allow these companies to receive state aid to offset electricity costs.

Consultation response

Verband der Industriellen Energie- und Kraftwirtschaft, 17 Jan 2019

VIK-Stellungnahme zur KOM-Konsultation über die ETS-Beihilfeleitlinien Hintergrund Die ETS-Beihilfeleitlinien müssen gerade vor dem Hintergrund der zahlreichen Reformmaßnahmen in Vorbereitung der vierten Handelsperiode die globale Wettbewerbsfähigkeit der EU berücksichtigen. Denn für deren…