Brussels, 18/07/2013 (Agence Europe) - On 17 July, the European Commission gave the go-ahead for a scheme compensating energy-intensive users for CO2 costs in their electricity price as of January 2013 is in line with EU state aid rules because it maintains incentives for the beneficiaries to further reduce their CO2 emissions. The Commission's investigation found that the scheme, in applying the harmonised methodology of the ETS (carbon trading) guidelines, would effectively prevent carbon leakage while keeping competition distortions to a minimum. Since the aid will progressively be reduced, the scheme ensures that the beneficiaries have an incentive to further reduce emissions.
By contrast, the Commission found that a 2009 scheme supporting non-ferrous metal producers was incompatible with the internal market because the €40 million scheme would have compensated non-ferrous metal producers (aluminium, copper and zinc) for alleged ETS-related costs. The Commission concluded that the scheme would favour very selectively only eleven German beneficiaries to the detriment of competitors in the internal market. Moreover, Germany did not demonstrate that at the time there was really a risk of carbon leakage. (FG/transl.fl)