The European Commission has updated the Guidelines on certain State aid measures in the context of the system for greenhouse gas emission allowance trading post-2021 (“ETS State Aid Guidelines”). With this revision, the list of sectors eligible for compensation of indirect CO2 costs, i.e. electricity-related CO2 costs passed through in power prices, has been expanded to cover the entire glass fibre sector.
This update means that Member States may now include all glass fibre products classified under code 23.14 in their national indirect CO2 cost compensation schemes, should they decide to implement or extend such schemes. Where national programs are in place, Member States can grant compensation to eligible installations for a share (up to 80 percent) of the indirect emission costs linked to the electricity consumed in the production of products classified under code 23.14. Previously, eligibility under the EU guidelines was limited to glass veils (23.14.12.30) and mats (23.14.12.10).
Glass Fibre Europe welcomes this revision as an important step to support the competitiveness of Europe’s glass fibre industry during the green transition. The sector is investing in industrial transformation and electrification in line with the EU climate neutrality objective, which entails significant additional costs. With electricity representing around 30 percent of total energy consumption and energy prices remaining high in Europe, extending indirect CO2 cost compensation can help reduce carbon leakage risk and preserve competitiveness against global producers operating with lower energy prices and without equivalent carbon pricing.
“This revision sends a clear signal that Europe stands behind its industries in difficult times, while maintaining its climate ambition,” said Glass Fibre Europe Secretary General Cédric Janssens. “It is now up to Member States to take full advantage of this opportunity by extending their national compensation schemes to cover glass fibre installations.”
The revised guidelines are available on the European Commission website: Commission amends ETS State aid Guidelines.