On 11 March 2011 the Commission launched a public consultation on Guidelines for how Member States can support sectors exposed to specific additional costs resulting from the 2013 EU Emission Trading System (ETS). The scheme, introduced in 2005 has the aim of promoting the reduction of CO2 emissions and the prevention of climate change. It is anticipated that the amended ETS Directive 2009/29/EC will allow Member States to grant state aid in favour of sectors at risk from “carbon leakage” between 2013 and 2020. Carbon leakage occurs when rising electricity prices result in companies (who are unable to pass such increases on to their customers) move their electricity production to countries outside the EU where there are no constraints on CO2 emission. The Commission’s aim is to mitigate this unintentional effect. The deadline for contributions to the consultation is 11 May 2011.
To access the Commission's consultation click here