BRUSSELS (dpa-AFX) - The EU Commission is allowing increased state aid for energy-intensive industries. In order to strengthen the competitiveness of industry and prevent companies from relocating abroad, support will now be permitted for additional sectors, according to the Brussels authority. Sectors already receiving aid, such as the steel and chemical industries, will also be eligible for more government support in the future.
Specifically, the so-called electricity price compensation is being expanded. This measure indirectly relieves companies of costs arising from CO2 emissions trading. The background is that prices for so-called CO2 certificates in the EU Emissions Trading Scheme have risen in recent years. These certificates are a tool for pricing greenhouse gas emissions. They function as pollution rights within the emissions trading system, which aims to reduce emissions.
Relocation to Be Prevented
Due to rising prices, there is a risk that more energy-intensive industries will move their production to countries outside the EU with less stringent emissions restrictions, the Commission stated. There is also concern that more climate-damaging imports could replace EU products. "If this happens, economic activity within the EU decreases, while global greenhouse gas emissions do not decline," the statement read.
With electricity price compensation, Germany and other EU countries can grant companies compensation for part of the high electricity costs resulting from the impact of CO2 prices on power generation costs. This is permitted for sectors that consume large amounts of energy and are exposed to international competition.
In response to the increased cost of emissions certificates, additional sectors such as the ceramics, glass, and battery industries will now also be eligible for support. For existing sectors, the maximum subsidy will rise from 75 percent to 80 percent of indirect electricity costs. At the same time, large aid recipients must invest part of the funds in projects that help reduce the costs of the electricity system.
Federal Government Also Plans to Introduce Industrial Electricity Price
Federal Finance Minister Lars Klingbeil commented on the EU Commission's initiative: "Energy prices must continue to fall - and this is an important step forward." The expansion of electricity price compensation is very good news for German industry. "With this, we are making our industry internationally competitive and protecting jobs in our country. We are achieving noticeable relief in energy costs starting in 2026," said the SPD chairman.
In addition, the federal government plans to introduce an "industrial electricity price" for energy-intensive companies that do not benefit from electricity price compensation, targeting a price of 5 cents per kilowatt hour. The government is engaged in intensive discussions with the EU Commission on this matter, Klingbeil said. "We are fighting for every job in our most important industries."/rdz/DP/nas
