The European Commission has approved, under EU State aid rules, a €687 million Finnish scheme to partially compensate energy-intensive companies for higher electricity prices resulting from the impact of carbon prices on electricity generation costs (so-called ‘indirect emission costs’), incurred between 2021 and 2025, under the EU Emission Trading System (‘ETS’).
The measure will benefit companies active in sectors at risk of carbon leakage listed in Annex I to ETS guidelines.
Those sectors face significant electricity costs and are particularly exposed to international competition.
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 to be made in 2026.
The maximum aid amount per beneficiary will be equal to 25 % of the indirect emission costs incurred.
The aid amount is calculated based on electricity consumption efficiency benchmarks, which ensure that the beneficiaries are encouraged to save energy. The Commission assessed and approved the measure under EU State aid rules, and in particular guidelines.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €687 million scheme paves the way for Finland to reduce the risk of carbon leakage for its energy-intensive industries.”
“At the same time, it will promote a cost-effective decarbonisation of the economy in line with the Green Deal objectives, while protecting competition in the Single Market.”