ETS State aid Guidelines amended to enhance safeguards against carbon leakage
The Commission has adopted an amendment to the ETS State aid Guidelines to address the heightened risk of carbon leakage faced by energy-intensive industries, following the sustained rise in emission costs under the EU Emissions Trading System (ETS). As announced in the European Chemicals Industry Action Plan, the amendment extends protection to additional sectors exposed to international competition, helping safeguard the competitiveness of EU industry while preserving strong incentives to invest in decarbonisation.
The revised Guidelines expand the list of eligible sectors to include 20 new sectors and two subsectors, notably in organic chemicals, ceramics, glass and batteries, and increase the aid intensity from 75% to 80% for sectors already covered. Moreover, they allow Member States to notify additional sectors where a genuine carbon-leakage risk can be demonstrated, update CO₂ emission factors for 2026-2030, and reinforce green transition requirements for large beneficiaries. These changes ensure that indirect ETS cost compensation remains equitable, targeted and aligned with EU climate and industrial objectives.
For more information, see the Commission’s PR.