Commission approves compensation to energy-intensive companies in Czechia for indirect emission costs

The European Commission has approved, under EU State aid rules, Czech plans to partially compensate energy-intensive companies for higher electricity prices resulting from indirect emission costs under the EU Emission Trading Scheme (ETS). The scheme will cover indirect emission costs incurred in the year 2020, and has a provisional budget of approximately €88 million.

The measure will benefit companies active in Czechia in sectors facing significant electricity costs and which are particularly exposed to international competition. The compensation will be granted through a partial refund of indirect ETS costs to eligible companies. The Commission assessed the measure under EU State aid rules, in particular its Guidelines on certain State aid measures in the context of the greenhouse gas emission allowance trading scheme post-2012 and found that it is in line with the requirements of the Guidelines.

In particular, the scheme will help avoid an increase in global greenhouse gas emissions due to companies relocating to countries outside the EU with less stringent environmental regulation. Furthermore, the Commission concluded that the aid granted is limited to the minimum necessary.

More information will be available on the Commission’s competition website, in the State Aid Register under the case number SA. 58608