The measures are compensations for costs resulting from indirect emissions of greenhouse gases.
The scheme will cover the period 2021-2030 and has an estimated total budget of €500 million. The measure aims to reduce the risk of “carbon leakage”, where companies relocate production to third countries with less ambitious climate policies, leading to a decrease in economic activity in the EU without reducing global greenhouse gas emissions.
The measure will benefit companies in sectors at risk of carbon leakage. These sectors face high electricity costs and are particularly exposed to international competition. Compensation will be granted to eligible companies in the form of a partial reimbursement of indirect emission costs incurred in the previous year.
The maximum amount of aid will be 75% of the indirect emissions costs incurred. However, in certain cases, the maximum amount of aid may be higher in order to limit the remaining indirect emission costs to a maximum of 1.5% of the company’s gross value added.
EU members states must get the approval of Brussels for these types of aids to avoid state aids leading to unfair competition on the European market.
