November 28
2021
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Emilija Berzanskaite
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24th November 2021
Competition & State Aid

‘Efficiency Benchmarks’ and ‘CO2 Factors’ Annexes supplementing EU Emission Trading System State Aid Guidelines adopted

The EU Emission Trading System State aid Guidelines (ETS Guidelines) aim at the reduction of ‘carbon leakage’ – companies shifting production outside the EU, which defeats the purpose of reducing greenhouse gas emissions globally. The Guidelines enable Member States to compensate sectors at risk of relocation for part of the higher electricity prices resulting from the carbon price signals created by the indirect emission costs.

Today, the European Commission adopted a Communication establishing two new annexes to the ETS Guidelines - the applicable ‘Efficiency Benchmarks’ and ‘CO2 Factors’. The efficiency benchmarks represent the quantity of electricity involved in the most efficient production process for each product. The CO2 f

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