European Commission Approves French $14Bln Scheme To Refund Companies' Emission Costs

MOSCOW (UrduPoint News / Sputnik - 01st December, 2022) The European Commission said on Thursday that it had approved France's proposed scheme worth 13.5 billion Euros ($14 billion) aimed at providing financial support for its companies to compensate for higher energy prices caused by emission costs arising from EU rules.

"The scheme notified by France, with a total estimated budget of 13.5 billion euros, will cover part of the higher electricity prices arising from the impact of carbon prices on electricity generation costs (so-called 'indirect emission costs') incurred between 2021 and 2030," a statement from the commission read.

The commission noted that the program would allocate money to cover part of higher energy prices that arise from costs of CO2 emissions between 2021 and 2030, adding that the scheme's main goal was to avoid so-called carbon leakage when companies relocate their production to countries with less ambitious climate policy so as to reduce costs, but increase greenhouse gas emissions worldwide.

Under the scheme, eligible companies will receive assistance through a refund of emission costs and get annual payments until 2031.

The European Commission also said that it had approved the program, as it complies with EU rules on energy audits and climate and environmental goals set in the European Green Deal.

In 2019, the commission adopted the so-called European Green Deal, intended to cut carbon emissions and build a resource-efficient and eco-friendly economy, with a net carbon neutral target set for 2050. However, these efforts have been severely undermined as the EU began to deviate from initial climate goals so as to mitigate the energy crisis caused by sanctions on Russia and its energy supplies.