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Parliamentary questions
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28 April 2021
Answer given by Mr Breton
on behalf of the European Commission
Question reference: E-000796/2021

The Commission is working to ensure framework conditions that enable the industry to transition to climate-neutrality while staying competitive. This concerns in particular the energy-intensive industries, which are at the heart of many value chains and therefore play a crucial role in the green transition of the entire industrial sector.

To prevent carbon leakage, free allowances have been introduced under the EU emissions trading system (ETS). In addition, the Commission allows for reduction from certain electricity levies in favour of energy intensive users and it has introduced new state aid guidelines for compensation of indirect ETS costs. Spain can also compensate electro-intensive companies in selected sectors for the ETS costs embedded in the price of electricity. In addition, the funds allocated to Spain under the Recovery and Resilience Facility provide an unprecedented opportunity to take action to improve the operating environment of these industries.

On 11 January 2021 the Commission Decision on Compensation for Energy Intensive Users (EIUs) for the cost of financing of RES (renewable energy sources), CHP (combined heat and power) and non-peninsular territories in Spain(1), approved the Spanish state aid scheme implemented by Royal Decree 1106/2020. The scheme partially compensates energy-intensive companies for the costs related to certain electricity levies. Through the same Decision, the Commission also assessed the measure implemented through the ‘Reserve Fund to Guarantee Large Electricity Consumers’ (FERGEI), and concluded that the State guarantee scheme does not constitute aid within the meaning of Article 107(1) of the Treaty on the Functioning of the European Union.

(1)Commission Decision SA.54558 : https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_54558
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