Annex 8: Responses to targeted consultation question 13

• Author: Fabien Roques - Helene Laroche
• Pages: 105-108

Com bined ret rosp ectiv e ev aluat ion and prosp ecti ve im pact asse ssmen t su ppor t st udy on Emission

Trad ing Syst em ( ETS) Stat e Aid Guidelin es

105

Annex 8: Respon ses to target ed con sultation que stion

13

Tabl e 19: Responses t o target ed consulta tion question 13

“How w ou ld a degressiv e cost com pensation, e. g. starting at 75% , af fect t h e risk of

com petition dist ortion s bet ween differ ent un dert akings, e.g . due to the fact t hat som e

Mem ber Stat es would be ab le t o gr an t full com pensation w hilst ot hers m ay decid e to

grant no compen sation or du e to th e gap betw een the t reat m ent of sectors offering

sub stit utable pro duct s?”

Sector

Su mm ary of th e r espo nse

05 .10 - Mi ning of

har d co al

N/ A

05 .20 - Mi ning of

lignite

N/ A

07 .10 - Mi ning of

ir on or es

The elect rici ty inte nsive pro cesses o f ir on o re m ini ng ar e car ried out in

onl y on e Mem ber Stat e ( Swede n), so t he r isk of m ark et disto rti on i n

int r a-EU tr ade s hould not be a con cern for the tim e be ing. How ever,

giv en t he fact tha t h e upd ated Sta te Ai d Gui delin es wi ll r efer to the

20 21 – 20 30 p eriod , f uture iron ore exp lorat ion and ext racti on sh ould

also be take n in to c onsidera tion . Th ere a re n o sub stit ute s ava ilabl e for

th e m ain down stream ma rket , n amel y t he st eel sector .

07 .29 - Mi ning of

ot her non- fer rous

m etal ores

To l imi t po ssible dist ort ions, all Memb er S tat es sho uld p rov ide t he same

lev el of aid intensit y t o en able a leve l pla ying field wit hin the secto r. A

deg ressiv e cos t com pen sati on w ould like ly a ffect th e ri sk of com peti tion

dis tort ion s wit hin th e ot her non-f erro us m etal mi ning sec tor. Man y no n-

fer rou s me tal ores have no s ubst itut es. Howev er, whe re su bsti tut es do

exi st a nd o ther sect ors receiv e St ate Aid, dist ort ions are l ikely to o ccur.

Furt her mor e, l ack o f or lim ite d com pen satio n wo uld likel y af fect th e

ot her non- fer rous met al m ining secto r’s c ompe tit iven ess in th e

int ern atio nal mar ket .

08 .91 - Mi ning of

chem ical and

fer til iser min erals

Und ersup ply of co mpe nsati on w ill incre ase t he r isk of car bon leak age

and th e ri sk of rel ocati ng i nvest me nt. Given th e tr ade int ensit y of the

EU fe rti lizer indu str y, a loss of g lobal com peti tiv eness due t o i ndir ect

car bon costs could be mor e har mful tha n in tern al m ark et d isto rti ons

fr om diver se n atio nal co mpe nsati on sc heme s.

08 .93 - Ex tra ction

of salt

N/ A

08 .99 - Ot her

mini ng a nd

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 fact ure of o ils

and fat s

N/ A

10 .62 -

Manu fact ure of

sta rches and

sta rch prod ucts

To l imi t po ssible dist ort ions, all Memb er S tat es sho uld p rov ide t he same

lev el of aid intensit y t o en able a leve l pla ying field wit hin the secto r. A

deg ressiv e cos t com pen sati on w ould like ly a ffect th e ri sk of com peti tion

dis tort ion s wit hin th e sta rch sector and bet ween th e starc h sect or and

ot her sectors (e. g. su gar beet ) i n Eur ope. Furt herm ore , la ck of or

lim ited comp ensat ion woul d lik ely affe ct t he st arch sect or’s

com pet itiv eness in the int erna tion al m ark et.

10 .81 -

Manu fact ure of

sugar

Ther e is stil l a hi gh r isk of co mpet iti on d istor tion dep endin g on th e

ind ustr ial elect ricit y p rices and the giv en cost comp ensat ion. Com pani es

in Memb er St ate s wit h h igh indu str ial el ectr icit y pr ices a nd w ith out cost

com pensa tion wi ll ha ve a high er b arr ier to i nvest ing in l ow ca rbon

te chnol ogies via elect rifi catio n.