The European Commission has approved, under EU State aid rules, a €2.9bn Spanish scheme and a €1.4bn Czech scheme to partially compensate energy-intensive companies for higher electricity prices resulting from indirect emission costs under the EU Emission Trading System (ETS).
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 2031. The maximum aid amount will amount to 75 % of the indirect emission costs incurred; in Spain, the maximum aid amount can be higher to limit the remaining indirect emission costs incurred to 1.5 % of the company's gross value added. The aid amount is calculated based on electricity consumption efficiency benchmarks, which ensure that the beneficiaries are encouraged to save energy.
The support measure is aimed at reducing the risk of "carbon leakage", i.e. when companies relocate their production to non-EU countris with less ambitious climate policies.
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