The amount of 1.36 billion euros has been approved European Commission compensate energy-intensive industries to compensate for increased costs electricity from the cost of carbon emissions. This amount covers the period 2021-2030 and is for companies operating in the steel, aluminium, copper, oil and paper industries that are subject to international competition. The support measure aims to limit the risk of “carbon leakage”, i.e. the transfer of production of companies to countries outside the EU. with less ambitious climate policy resulting in increased greenhouse gas emissions worldwide. Compensation will be provided to eligible companies by partially recovering indirect emissions costs incurred in the previous year.

The final payment will be made in 2031. The Commission even approved the retroactive payment of grants for 2021 on April 30, 2023, recognizing the time required to complete the plan and the exceptional circumstances associated with the current energy crisis. A prerequisite for the payment of subsidies are energy saving targets through three alternative measures. In particular, beneficiaries, in order to be eligible for compensation, must either comply with certain energy audit recommendations or, alternatively, cover at least 30% of electricity consumption from renewable sources, or invest at least 50% of the amount of assistance in projects that lead to to a significant reduction in greenhouse gas emissions of the facility. Beneficiaries must fulfill one of the above obligations within three years from the date of the assistance.

The amount refers to the period 2021-2030 for companies in the steel, aluminium, copper, oil and paper sectors.

The maximum aid amount per beneficiary is set at 75% of the cost of carbon emissions. However, in accordance with the decision approved by the Commission, in some cases the maximum amount of assistance may be higher in order to limit the cost of emissions to 1.5% of the company’s gross value added. The amount of assistance is calculated based on energy efficiency benchmarks so that beneficiaries are encouraged to save energy. The offsetting measure is part of the revised state aid guidelines issued by the Commission in September 2021, which will apply until 2030, with some elements updated in 2025 interim.