Annex 5: Responses to targeted consultation question 10

• Author: Fabien Roques - Helene Laroche
• Pages: 93-96

Final rep ort

93

Annex 5: Responses to targeted consu ltation qu e stion

10

Tabl e 16: Respon ses t o ta rget ed consu ltat ion quest ion 10

” What level of aid in tensity w ould best safeguard ( m inim ise) th e risk of com petition

distort ion s b etw een di ffe ren t u nd ert aki ngs , i .e. du e t o t he fac t t ha t s om e Mem be r St at es

would be able to grant f ull compen sat ion w hilst oth er m ay decide t o gr ant no

com pen satio n or du e to th e gap bet ween t he t reat me nt of sec tor s off erin g su bsti tut able

produ cts?”

Secto r

Su mm ary of th e r espo nse s

05 .10 - Mining of

har d co al

N/ A

05 .20 - Mining of

lignit e

N/ A

07 .10 - Mining of

ir on or es

The electr icity intensive processes of i ron ore mining are carr ied ou t in

onl y one Mem ber St ate ( Swed en) , so t he ris k o f m ar ket d isto rt ion in in tr a-

EU trad e sh ould not b e a con cer n for t he time being. Ther e are no

substi tutes avai lable for th e main downstr eam market , namely the steel

sect or.

07 .29 - Mining of

other non- fer rous

m etal ores

I f no t a ll Mem ber St ates gra nt comp ensa tion to NACE 07 .29 inst alla tio ns,

th ere is a risk of com peti tion di stor tion s wi thi n t he se ctor . To avo id i ntr a-

EU disto rt ions, all Member States sh ould provi de th e same level of aid

int en sit y.

08 .91 - Mining of

chem ical and

fer til iser min erals

Indirect emissio n cost s comp ensation should f ull y balance in direct

em issio n co sts added t o ele ctr icit y p rice s fo r i ndus tri es ex pose d t o ca rbon

lea kage, an d t his in a ll m em ber stat es i n t he sa me way . Th e fa ct t hat t he

exc hangeabi lity of fuel and elect rici ty was u sed i n set tin g t he be nchm ark

means that f ull comp ensation is needed t o avoid dist ortion betw een EU

produ cers.

08 .93 - Ex trac tion

of salt

N/ A

08 .99 - Oth er

mining and

quarr ying n. e.c.

Sam e as 07. 29 - Min ing of ot her non -ferr ous m eta l or es

10 .41 -

Manu facture of o ils

and fat s

N/ A

10 .62 -

Manu factu re of

sta rch es and

sta rch prod ucts

Navigant do es not su ggest a lev el of aid intensi ty t o avo id confli cts of

int erest. Howe ver, if not all Mem ber S tates g rant com pensa tion , t here is

a r isk of co mpet it ion d isto rti ons w ith in t he se ctor and wit h o ther sect ors,

such as the sugar bee t se ctor . Si nce t he energ y co sts are c onsid erabl e in

rel ati on t o op erat ing cost s an d th e sec tor is u nabl e t o pas s th ese co sts t o

th eir cu stomers, any company w it hin t he sect or t hat receives Stat e Aid

wo uld outco mpe te t he co mpa nies that wo uld not recei ve su ch aid.

10 .81 -

Manu factu re of

sugar

Full com pensat ion o f ETS co sts associate d wi th use of grid elect rici ty are

seen as adequate. The big gest dist orti on for the m arket is t he different

ind ustr ial el ectr icit y pr ices i n t he Mem ber sta tes.

11 .06 -

Manu factu re of

malt

If t he level of ai d int ensit y will not be 10 0% , t here will be risks of

com pet it ion di sto rt ion s b etw een sect or s ( sta rch in com pe ti tio n w it h m al t) .

13 .10 -

Preparation and

spinning of text il e

fibres

N/ A