ESA revises ETS State aid guidelines
ESA has adopted amendments to its guidelines on State aid for sectors exposed to the European Emission Trading System (ETS).
The guidelines, originally adopted in December 2020 and updated in January 2022, allow Iceland, Liechtenstein, and Norway to compensate industries genuinely at risk of carbon leakage.
The amendments align ESA’s rules with the European Commission’s December 2025 update, extending coverage to additional energy-intensive sectors due to rising ETS costs.
Key amendments include:
- Extension of eligible sectors 20 new sectors and two new sub-sectors
- Higher aid intensity: maximum aid intensity increases from 75% to 80%
- Flexibility for additional sectors: EEA EFTA States may notify sectors or sub-sectors not included in the revised list, provided they can demonstrate a genuine risk of carbon leakage
- Stronger green-transition requirements: Large beneficiaries must now meet specific obligations contributing to the green transition.
Emission factors and geographic areas for 2026–2030 have been updated, allowing EEA EFTA States to apply their own methodology and a gradual transition if the reduction in the maximum CO₂ factor is significant. The amended guidelines further permit EEA EFTA States to introduce a gradual transition from 2026 to 2030 when the reduction in the maximum regional CO₂ emission factor, compared with the 2021-2025 period, is particularly substantial.
For more information, see ESA’s PR.