EC allows Romania to pay subsidies to energy-intensive industrial consumers
<p>The government of Romania obtained the European Commission's green light to implement a RON 2.9 billion grant scheme aimed at the energy-intensive industrial companies hit by the green policies of the European Union.&nbsp;</p>

<p>The state aid and the brown energy taxation are expected to balance each other, in a fine-tuned strategy aimed at achieving climate neutrality and economic growth at the same time.</p>

<p>In essence, the state aid scheme aims at shifting the financing of green energy investments from the pocket of the energy-intensive companies (some of which can no longer afford to pay the 'green certificates') to the pocket of the public budget.</p>

<p>The scheme will run until December 31, 2031, so it's not a short-term patch, <a href="https://www.zf.ro/zf-24/comisia-europeana-aproba-o-schema-de-ajutoare-de-stat-in-valoare-de-22567853?mc_cid=44675bb56a&amp;mc_eid=cd1f92f96c" rel="noopener" target="_blank">Ziarul Financiar</a> reported.</p>

<p>The state aid scheme is aimed at reducing the level of electricity taxation for large energy-consuming enterprises, set up to promote electricity from renewable sources.&nbsp;</p>

<p>In its turn, the state aid scheme aims to mitigate the risk that, because of the brown energy tax, large energy-consuming companies will move their activities to places outside the EU with less ambitious climate policies, the Commission explains.</p>

<p>Beneficiaries of the state aid scheme will benefit from a tax reduction between 75% and 85%, depending on their "exposure to risk [of competition from outside players'." The applicable reduction must not result in a charge of less than EUR 0.5/MWh.</p>

<p>In turn, beneficiaries will either have to implement certain recommendations made following the energy audit or cover at least 30% of electricity consumption from sources that do not produce carbon dioxide emissions, or invest at least 50% of the aid in projects that lead to substantial reductions in the installation's greenhouse gas emissions.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: <a href="https://www.dreamstime.com" rel="noopener" target="_blank">Cineberg Ug/Dreamstime.com</a>)</em></p>