The European Commission has announced that it has approved a €78 million Slovenian support scheme designed to partially compensate energy-intensive companies for the higher electricity costs associated with carbon pricing under the EU Emissions Trading System (ETS).
The measure specifically addresses the indirect costs of emissions that arise when carbon prices raise wholesale prices for electricity.
Steel and other energy-intensive sectors
The scheme applies to companies operating in sectors that are highly energy-intensive and subject to international competition. Eligible industries include iron and steel, aluminum and other metals, paper and chemicals.
The support will cover up to 75 percent of indirect emissions costs incurred between 2025 and 2027. Payments will be made next year, with a final disbursement scheduled for 2028 to offset costs incurred in 2027.
Efficiency Benchmarks and Zero-Carbon Energy Requirements
To incentivize energy efficiency, assistance calculations will be based on electricity consumption benchmarks that reward the most efficient production processes.
Companies seeking compensation must demonstrate that at least 30 percent of their electricity consumption comes from carbon-free energy. In addition, beneficiaries will be required to reinvest the aid into climate action within two years of receiving the final payment.
