• European Commission Consults on State Aid Guidelines Related to the EU Emission Trading Scheme
  • March 23, 2011 | Author: Kiran S. Desai
  • Law Firm: Mayer Brown International LLP - Brussels Office
  • The EU Emission Trading Scheme (“EU ETS”) was established in 2005 for the purpose of limiting the CO2 emissions in the EU. It allocated allowances to economic operators and provided the possibility to trade these allowances. In 2008, Directive 2009/29/EC amended the EU ETS resulting in a further expansion of its scope and setting an overall EU cap. Under this Directive, EU Member States could provide state aid to concerned sectors in order to reduce the risk of socalled carbon leakage, i.e. industry sectors shifting production to non EU countries due to higher electricity costs (so-called indirect emission costs). The European Commission (“Commission”) intends to publish guidelines on these EU ETS related state aids.