CO2 cost coverage up to 100% for 8 industrial categories

New EU directives concerning CO2 emission cost coverage for industrial enterprises could lead to significantly increased support that may fully offset this cost.

The directives, planned for the period between 2021 to 2030, have just been forwarded for public consultation.

This greater carbon emission cost offsetting support is expected to enable power utility PPC to extend the operating period of at least one of its lignite-fired power stations for continued electricity supply to energy-intensive industries eligible for the offsetting measure.

The European Commission proposal aims to increase the offsetting percentage of CO2 emission costs for aluminum and steel industries until 2030 to a level of as much as 100 percent.

The number of eligible industrial categories is expected to be reduced from 14 at present to eight, according to the Brussels proposal.

Aluminum, iron, steel and ferroalloy production are among the categories proposed for carbon emission cost offsetting eligibility.