Public consultation: revised EU Emission Trading System State Aid Guidelines

The European Commission has launched a public consultation seeking comments on greenhouse gas emission allowance trading post-2021, in context with the new objective it has publicised widely for a climate neutral economy by 2050, and the European Green Deal (which has just been welcomed by MEPs sitting in the European Parliament’s Plenary Session this week). .

The Guidelines expire on 31 December 2020, and this consultation will be used for a revised version. They aim at the reduction of “carbon leakage” – companies shifting production outside the EU, which defeats the purpose of reducing greenhouse gas emissions globally.

The suggested aims for that new version are to:

• Reduce the number of eligible sectors for compensation from 14 to 8
• Lower the compensation rate and exclude some compensation
• Make compensation conditional on decarbonisation efforts.

Click here for more information about the public consultation, and here for the Commission’s press release of 14 January.