Aid for electrification
Some of the EU ETS allowance costs passed on in electricity prices will be compensated for a limited number of industries through an aid for the electrification of energy-intensive industries. Provisions on this scheme are laid down in the Act on Electrification Aid for Energy-Intensive Industries (493/2022). The Emissions Trading Directive allows the granting of this aid. The aid will provide a stronger incentive for carbon-neutral production and for the electrification of energy-intensive companies and will take cost competitiveness into account.
The scheme is valid for a fixed term of 2022–2026. The Energy Authority is the competent authority.
The sectors eligible and the criteria for granting the aid are in line with the guidelines on State aid on greenhouse gas emission allowance trading (2020/C 317/04), in which the Commission defined the conditions under which increases in electricity prices resulting from emissions trading can be compensated at national level. The scheme covers operators in the forest, metal and chemical industries.
It has been agreed nationally that beneficiaries must use at least 50% of the granted aid for development measures to increase the proportion of renewable energy or promote the reduction of greenhouse gas emissions, energy efficiency or electrification. This condition for the use of the subsidy is a national addition to the conditions set out in the State aid guidelines for emissions trading.
In 2017–2021, Finland granted aid based on the State aid Guidelines for emissions trading (2012/C 158/04) to compensate the indirect costs of emissions trading.
Further information: juhani.tirkkonen(at)gov.fi