COMPENSATION applications have opened to EU Emissions Trading System and Carbon Price support, which are designed to reduce emissions.
The EU Emissions Trading System has created a Europe-wide market for carbon, meaning that businesses and investors factor in the price of carbon when making production and investment decisions.
To further improve the functioning of the carbon market, the UK has introduced a Carbon Price Support mechanism.
The government states it recognises that carbon pricing through the EU ETS and CPS will
have a knock-on effect on the wholesale electricity price and increase retail electricity prices in the short to medium term.
Rising electricity costs can pose a risk to the UK’s most electricity-intensive businesses, particularly those which operate in internationally competitive markets and are unable to pass these costs through to consumers.
In recognition of this, the government has sought and obtained approval from the European Commission to compensate those electricity intensive industries whose
competitiveness may be most at risk.
This guidance sets out how businesses can claim compensation for the indirect costs of the EU Emissions Trading System and Carbon Price Support.
The Government’s current commitment is to provide compensation until 2020.
For more information, visit here.
ICON is happy to support you during the application process.
Please email us at [email protected]
