Brussels approves Greek scheme for partial compensation of energy-intensive enterprises
The European Commission has approved, under EU state aid rules, a Greek government scheme for the partial compensation of energy-intensive enterprises for the increase in electricity prices as a result of the cost of indirect emissions under the EU Emissions Trading System (ETS).
The scheme, which has a total estimated budget of €1.36 billion, will cover part of the increase in electricity prices due to the impact of coal prices on the cost of electricity production – the so-called indirect emission cost – which will arise in the period from 2021 to 2030.
The support measure aims to limit the risk of “carbon leakage,” or the transfer of production by companies to countries outside the EU with less ambitious climate policies, which would result in an increase in greenhouse gas emissions worldwide.
“This €1.36 billion scheme enables Greece to reduce the risk that energy-intensive companies move their activities to locations outside the EU with less ambitious climate policies. The scheme maintains the incentives for a cost-effective decarbonization of Greece’s economy, in line with the European Green Deal objectives, while ensuring that competition distortions are kept to the minimum,” said Margrethe Vestager, executive vice-president in charge of competition policy at the Commission. [AMNA, Ekathimerini]
