Commission Approves Amendment to Portuguese State Aid Scheme for Compensation of Indirect Emission Costs
The Commission has approved a EUR 100 million budget increase for a Portuguese state aid scheme compensating energy-intensive companies for higher electricity costs due to carbon pricing under the EU Emission Trading Scheme (ETS). The scheme was originally approved in November 2022 and provides partial refunds to eligible companies for indirect emission costs from 2021 to 2030. To prevent significant reductions in compensation, the budget has been raised to EUR 275 million.
The Commission approved the scheme under the Guidelines on certain State aid measures in the context of the greenhouse gas emission allowance trading scheme post-2021 (‘ETS State aid Guidelines’), concluding that it still meets the necessary criteria, supporting energy-intensive companies facing high electricity prices and preventing relocation to non-EU countries with weaker climate policies.
For more information, see the Commission’s PR.