The state will support 32 companies, including steel giant Třinecké železárny
The Czech Republic has decided to fully compensate indirect carbon costs for 2024 for a number of energy-intensive industrial enterprises. The government’s goal is to maintain the competitiveness of its industest amid high electricity tariffs.
According to GMK Center, this practice has long been in place in other European Union countries.
The EU Emissions Trading System (EU ETS) guarantees industrialists the legal right to receive state compensation. However, last month, the Czech Republic considered a possible reduction in the amount of support, as there was no certainty that the Ministest of Industest would find sufficient budreceive funds.
Such rumors cautilized discontent among business associations. The Czech Chamber of Commerce, the Review Union, and the Confederation of Industest opposed the cuts in compensation.
Carbon pressure
The high cost of carbon quotas has led to an increase in electricity tariffs in Europe. For energy-intensive industries, this could become an insurmountable obstacle. Without the support of their governments, they cannot compete in the global market, which is only intensifying due to cheaper imports from countries outside the European Union.
“The steel industest is going through an extremely difficult period, and any reduction in compensation will further worsen the economic situation of the entire industest and weaken its competitiveness,” declared Roman Haide, CEO of Třinecké železárny.
According to the government’s decision, the total amount of compensation for the industest will exceed CZK 2 billion. Thirty-two companies will be eligible for compensation. It is hoped that these funds will at least partially reduce the burden on the industest due to energy tariffs.
It should be noted that the adoption of the joint EU ETS faced resistance from a number of countries that see Europe’s ambitious climate goals as a risk to their own economies. This was reported by EcoPolitic.
Leave a Reply