The European Commission has announced that it has approved a €78 million Slovenian support scheme designed to partially compensate energy-intensive companies for higher electricity costs arising from carbon pricing under the EU Emissions Trading System (ETS).
The measure specifically addresses indirect emission costs, which occur when carbon prices increase wholesale electricity prices.
Steel and other energy-intensive sectors eligible
The scheme applies to companies operating in sectors that are both highly energy-intensive and exposed to international competition. Eligible industries include iron and steel, aluminum and other metals, paper and chemicals.
The support will cover up to 75 percent of indirect emission costs incurred between 2025 and 2027. Payments will be made in the following year, with the final disbursement scheduled for 2028 to compensate costs incurred in 2027.
Efficiency benchmarks and carbon-free power requirement
To encourage energy efficiency, the aid calculation will be based on electricity consumption benchmarks that reward the most efficient production processes.
Companies seeking compensation must demonstrate that at least 30 percent of their electricity consumption is sourced from carbon-free energy. Furthermore, beneficiaries will be required to reinvest the aid in climate protection measures within two years of receiving the final payment.
The Commission concluded that the measure is necessary, appropriate and proportionate to mitigate the risk of carbon leakage and relocation of energy-intensive production to jurisdictions with less stringent climate policies, which could otherwise result in higher global greenhouse gas emissions.
