BRUSSELS, Dec 23 (KUNA) -- The European Commission adopted new amendments to compensation schemes for energy-intensive industries aimed at easing the cost of complying with European Union emissions rules, in a move intended to encourage companies to keep their investments within the bloc.
The new amendments relax the rules on "State aid," which allows member states to compensate industries for part of the increase in electricity bills resulting from higher power generation costs driven by carbon prices, the EC said in a press release on Tuesday.
The Commission stressed that the updated guidelines will help prevent "carbon leakage," which occurs when companies relocate production to countries outside the European Union with weaker emissions constraints, or when European products are replaced by imports with higher carbon intensity.
It noted that the list of industrial sectors eligible for compensation under the EU Emissions Trading System has been expanded to include 20 additional sectors, among them the manufacture of organic chemicals and certain activities in the ceramics, glass and battery sectors.
The Commission explained that this expansion has become necessary in light of the significant rise in emissions costs in recent years, which has exposed a larger number of sectors to the risk of carbon leakage compared to the past.
It affirmed that the inclusion of additional sectors will enhance the competitiveness of European industry, while continuing to incentivise it to move forward on the path of emissions reduction and decarbonisation. (end) arn.gb