The European Commission announced the adoption of new rules on public support for projects in the field of environmental protection and energy. The guidelines will support EU member states in reaching their 2020 climate targets, while addressing the market distortions that may result from subsidies granted to renewable energy sources. To this end, the guidelines promote a gradual move to market-based support for renewable energy.
"We appreciate the aim of the guidelines that energy-intensive industry, such as the steel industry, should be protected from artificial increases in electricity prices due to support offered to preferred energy generation technologies," commented the European Steel Association (EUROFER) director general Gordon Moffat in relation to the adoption of the new guidelines for energy and environmental state aid. He went on to say, "However, the 15 percent minimum contribution to national renewables subsidies will still lead to a further substantial increase in energy costs for many energy-intensive companies in the EU, costs which competitors do not have to bear."
EUROFER said that the disadvantages of the new guidelines for the steel industry clearly overweigh the advantages, because the cost burden resulting from subsidies for renewables and other decarbonization measures create competition distortions in the single market and the global market. In the field of environmental subsidies, one or other steel project may, however, benefit to some extent, it added.
