Establishing an effective mechanism offsetting CO2
According to the new guidelines concerning offsetting the indirect costs of CO2 emissions (2021-2030) subject to consultation by the European Commission, the offsetting is set at 75%, with the additional possibility for Member States being introduced, for the first time, to further reduce the burden of the indirect costs of CO2 emissions, in relation to the gross value added of companies belonging to sectors for which the burden, even after the application of a 75% compensation, remains disproportionately high.
With the publication of the new guidelines in the coming months, the Ministry should immediately notify the European Commission of the new mechanism for offsetting the indirect costs of CO2 emissions, by instituting the possibility of further reducing the burden in relation togross added values.
At the same time, the Ministry should immediately issue a ministerial decision, which will ensure that up to 20% of the proceeds from CO2 emissions allowances auctions will be used to finance the mechanism for offsetting the indirect costs of CO2 emissions.
In conclusion, if the goal for our country is to rehabilitate a productive economy and attract productive value-added investments, enabling industry to access competitively priced energy should be made a top priority.
In this regard, there is a clear need to take measures to ensure the competitiveness of the country’s major industries which are exposed to international competition, with interventions in all the individual parameters that shape final energy costs, with an emphasis on the following:
- Restructuring of the Greek electricity market in combination with additional measures which will aim at creating effective competition conditions in the market and encouraging demand participation.
- A rationalization of regulated charges under the Commission’s State Aid Guidelines in the fields of energy and the environment as well as the approved practices followed by European countries.
- Institutionalizing an effective mechanism for compensating for CO2 costs.