Bogdan Tudorache

The state aid guidelines for indirect costs compensation in the EU ETS are ”up for revision – not review – which means that they can be expected to change significantly,” say members of European Roundtable on Climate Change and Sustainable Transition (ERCST).

”The current guidelines expire on 31 December 2020, and the new guidelines would ‘indicatively’ be ready by Q3 2020 – just a few months before the new ones actually enter into force,” say ERCST officials.

In 2019, the European Commission held two consultations, a public one and a targeted one. Subsequently, on the 14th of January 2020, it published the draft guidelines, which are subject to an eight-week public consultation period, ending on March 10.

One of the changes of the EC document consulted by energynomics.ro provides that the states will have to limit the state aid to a maximum of 25% of the revenues obtained by the sale of certificates, without notifying the EC. Also, competitive auctions must be held for state aid granted to investments exceeding 12.5 million euro, shows the document. The aid must not be cumulated with the ”de minimis” state subsidy, and also must not exceed 75% of the indirect emission costs incurred, shows the document.