EU set for difficult talks on ETS indirect cost compensation

EU lawmakers face difficult negotiations on how to compensate industry for the indirect costs of carbon trading as France floats new proposals that would stop member states from granting national support.

The French paper, seen by ENDS, would set up a centralised fund for compensating industry for higher electricity prices resulting from the EU’s Emissions Trading System (ETS). It would be financed with a share of revenues from the auctioning of ETS allowances up to a limit of 7–15% of the cap, according to the proposal.