ARTICLE · 19 JUNE 2012

European Commission Issues Guidelines On State Aid For Emission Trading

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On 22 May 2012, the European Commission published its long-awaited Communication setting out guidelines on certain state aid measures.

European UnionEnergy and Natural Resources

Van Bael Bellis

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On 22 May 2012, the European Commission published its long-awaited Communication setting out guidelines on certain state aid measures in the context of the greenhouse gas emission allowance trading scheme ("ETS") post -2012.

The Communication allows national support to companies in a number of sectors to cover rising electricity costs. As a result of a change to ETS, electricity prices are expected to rise in certain sectors as from 2013 due to a passing on of the costs linked to greenhouse gas emissions. The aid measures apply to (sub)sectors that are deemed to be exposed to a significant risk of carbon leakage, a process referred to in order to cover the risk of companies being driven out of Europe by these high costs.

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European Commission Issues Guidelines On State Aid For Emission Trading

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