EUR 36 million Estonian State aid scheme to support energy-intensive industries greenlighted
The scheme will reduce electricity levy rates for energy-intensive companies and is designed to mitigate the risk of industrial relocation outside the EU to jurisdictions with less stringent climate policies, thereby helping to avoid an increase in global greenhouse gas emissions.
The scheme will apply to sectors identified in Annex I of the the 2022 Guidelines on State aid for climate, environmental protection and energy (‘CEEAG’) which are highly electricity-dependent and exposed to international competition. Eligible companies will receive levy reductions of 75% to 85%, subject to safeguards ensuring the levy does not fall below €0.5/MWh, and conditional on measures such as energy audits, renewable electricity sourcing, or reinvestment in emissions-reducing projects.
The Commission approved the scheme under the CEEAG, concluding that it is necessary, proportionate, and appropriate to avoid relocation.
For more information, see the Commission’s PR.