The European Commission has published draft state-aid rules for member states that want to reduce the impact of the EU emissions trading scheme (ETS) on sectors at risk of carbon leakage. The rules are open for consultation until the end of January.
From 2013 a new system of ETS allocation will make fewer allowances available for free. This could increase electricity costs and put some energy-intensive industries at risk. The new rules also cover state aid for carbon capture and storage, and exemptions from the scheme for small operators and power plants in newer member states.
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