EU green light on reimbursement of indirect ETS costs

The EU Commission has given Italy the green light under EU state aid rules for relief for energy-consuming industries on the indirect costs of the ETS (higher energy costs resulting from charges for CO2 emission permits).

The measure will benefit companies active in Italy in sectors which have to bear significant electricity costs and which are particularly exposed to international competition.

Compensation will be granted through a reimbursement to eligible companies.

The percentage of coverage of ETS costs will be the same for all applicants and will depend on the applications submitted and the resources available, amounting to a maximum of €90 million for the year 2020, with applications in 2021, and €140 million per year for each of the following years until 2030.

From 2021, to access the mechanism, industries will have to carry out an energy audit and implement the efficiency measures suggested by the audit.