Commission greenlights Austrian and Spanish State aid schemes to offset ETS indirect emission costs
The Commission has approved Austrian and Spanish schemes to compensate energy-intensive companies for higher electricity prices linked to carbon costs under the EU Emissions Trading System (ETS). The measures aim to reduce the risk of carbon leakage by supporting sectors exposed to international competition, such as steel, aluminium, chemicals and paper, ensuring that production does not relocate to jurisdictions with less stringent climate policies.
Austria’s EUR 900 million scheme will provide refunds of up to 75% of indirect emission costs between 2025 and 2029, subject to strong decarbonisation commitments by beneficiaries. Spain’s amended scheme, with a budget of EUR 8.51 billion, expands sectoral coverage and increases aid intensity up to 80% for certain industries.
The Commission assessed both measures under the ETS State aid Guidelines and concluded that they are necessary, proportionate, while supporting the EU’s climate objectives.
For more information, see the Commission’s PR.