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Draft document proposes state aid to energy-intensive industries in the EU

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World Cement,

Bloomberg is reporting that the European Union may allow state aid to 62 energy-intensive industries to help with the cost of boosting renewable energy.

Industries including aluminium and petroleum-product manufacturers would benefit under the scheme, which would include support in the form of reductions in environmental taxes when beneficiaries cover at least 20% of the additional costs, according to a draft document seen by Bloomberg.

The European Commission has said that aid should be given to sectors whose competitive position is at risk because of the burden of funding energy from renewable sources ‘as a function of their electro-intensity and their exposure to international trade’. Bloomberg reports that governments will be allowed to extend state aid to sectors with electrical intensity of at least 25% and trade intensity of at least 4% - whether as a lump sum paid to the beneficiary or as a reduction in charges. Full details of the story can be found here.

In Germany, Chancellor Angela Merkel has made reforming aid to clean energy and protecting producers from international competition a top priority. In 2013, reductions in power costs were granted to HeidelbergCement, Vattenfall Europe Mining AG and ThyssenKrupp AG, among a list of 1716 companies or units, amounting to about €4 billion.

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