According to European media reports recently, the European Commission is working out a draft regulation that will allow member states to pay special subsidies to 14 high-energy-consuming industries for their participation in the carbon emissions trading system (ETS).
According to reports, the preliminary list of industries to be subsidized by the European Union includes: aluminum, chemical and fertilizer mining, inorganic chemical industry, lead, zinc, tin production, leather garment industry, steel industry, paper industry, fertilizer manufacturing, copper Industry, organic chemical industry, cotton spinning industry, man-made fiber industry, iron ore mining industry, plastics production industry.
The EU's final decision will be made within two weeks. After the regulations are formally implemented, the European Commission will also conduct regular monitoring and increase or decrease the list. From January 2013 to 2020, companies in related industries will be eligible for additional subsidies. The draft stipulates that the subsidy intensity from 2013 to 2015 should not exceed 85% of the reasonable cost, not exceed 80% from 2016 to 2018, and not exceed 75% from 2019 to 2020. This approach is in full compliance with the existing regulations. The European Union's ETS Directive stipulates that member states can subsidize industries that face significant "carbon leakage" risks due to emission reductions. "Carbon leakage" means that high-energy-consuming industries have moved out of the EU to avoid the cost of abatement.
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