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State Aid | 3rd December 2019

Workshop presentation: Making State aid work for Europe’s decarbonisation – A critical assessment of the EU State aid framework for support to energy intensive industry – 3 December 2019
State Aid
Climate

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Workshop presentation: Making State aid work for Europe’s decarbonisation – A critical assessment of the EU State aid framework for support to energy intensive industry – 3 December 2019

The extensive provision of free allocation under the EU ETS and exemptions from various energy-related taxes and levies for carbon leakage protection has been heavily criticised by environmental NGOs and consumer protection organisations, especially in the recent context of low carbon and wholesale power prices. A steady rise in industry exemptions has also raised concerns over internal market distortions, competitiveness issues for non-exempted industries and distributional effects on households. At the same time, the current EU policy framework for industry decarbonisation remains inadequate to deliver climate-neutrality. In view of the upcoming revision of the State Aid Guidelines for Environmental Protection and Energy and the current revision of the ETS State Aid Guidelines for the fourth trading period (2021-2030), this workshop aimed to reflect on whether and how the existing guidelines and previous decisions have supported EU efforts at decarbonisation, with a particular focus on energy intensive industries.

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