Electro-intensive industrial sectors exposed to carbon leakage risk can receive state-aid-compliant financial compensation from Member States for indirect ETS costs passed through in electricity prices, funded from up to 25% of that Member State's auction revenue.
Sectors/subsectors exposed to genuine carbon leakage risk from indirect (electricity) ETS costs are offered support, and this is not law yet.
Why it matters
This is a Commission proposal: it is not law yet, and it can change before it is.
- It is Art. 1(15)(h), replacing Art. 10a(6) of Directive 2003/87/EC, in the EU ETS revision. as of 2026-08-14
- The act gives its timing as: n/a. as of 2026-08-14
- It names no industry: it applies across the economy rather than to one of them. as of 2026-08-14
- Compliance is checked by competent authority, annual. as of 2026-08-14
The rule
sector/subsector exposed to a genuine risk of carbon leakage due to significant indirect costs passed on in electricity prices
Electro-intensive industrial sectors exposed to carbon leakage risk can receive state-aid-compliant financial compensation from Member States for indirect ETS costs passed through in electricity prices, funded from up to 25% of that Member State's auction revenue.
Who is affected
Burden drivers
Source text
Member States should adopt financial measures in accordance with the second and fourth subparagraphs of this paragraph in favour of sectors or subsectors which are exposed to a genuine risk of carbon leakage due to significant indirect costs that are actually incurred from greenhouse gas emission costs passed on in electricity prices, provided that such financial measures are in accordance with State aid rules, and in particular do not cause undue distortions of competition in the internal market.
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