On Monday 17 October, the European Commission approved €10 billion of Polish aid to partially compensate energy-intensive companies for higher electricity prices resulting from the costs of indirect emissions under the EU’s Emissions Trading System (ETS).
The aid will cover part of the increase in electricity prices resulting from the impact of carbon prices on production costs incurred between 2021 and 2030.
The compensation will be granted to eligible companies through a partial refund of the indirect emission costs incurred in the previous year, with the final payment due in 2031.
The maximum amount of aid per beneficiary will be 75% of these costs. However, in some cases, this maximum amount may be higher in order to limit the remaining costs of indirect emissions to 1.5% of the company’s gross value added. The additional aid granted to limit the remaining costs of indirect emissions shall not exceed one third of the regular compensation based on the aid intensity of 75%.
The amount of aid will be calculated according to efficiency benchmarks for electricity consumption, which ensure that beneficiaries are encouraged to save energy.
Beneficiaries must cover at least 30% of their electricity consumption from renewable energy sources. (Original version in French by Lionel Changeur)