CO2-cost compensation scheme for industry

A new co2-cost compensation scheme ("Standortabsicherungsgesetz 2025") has been enacted to relieve companies exposed to increased electricity prices and a demonstrable risk of carbon leakage for the years 2025 and 2026. It is based on the European Guidelines on certain State aid measures in the context of the system for greenhouse gas emission allowance trading post-2021 and intended to maintain the competitiveness of European energy-intensive industries by offsetting higher electricity prices resulting from the pass-through of European Union (“EU”) Emissions Trading System (“ETS”) carbon costs. A prolongation of the scheme is planned for the period 2027-29.

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