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EU Emissions Trading Scheme

Business, Innovation and Skills written question – answered on 25th February 2013.

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Photo of Cathy Jamieson Cathy Jamieson Shadow Minister (Treasury)

To ask the Secretary of State for Business, Innovation and Skills

(1) if he will adopt the carbon emissions factor calculated by the EU when determining the amount of compensation for energy-intensive industries; and how much additional compensation would be provided if such calculations were adopted;

(2) for what reasons the Government does not intend to provide the maximum amount of compensation allowed under EU State Aid rules to energy-intensive industries exposed to indirect costs associated with Phase III of the EU Emissions Trading System; and whether additional funding will be released to ensure that compensation for EU Emissions Trading System indirect costs is competitive with other member states.

Photo of Michael Fallon Michael Fallon The Minister of State, Department for Business, Innovation and Skills

We recently held a consultation on our proposals for the compensation package for energy intensive industries which closed in December. As part of the consultation we received a number of comments on the carbon emissions factor. We are currently analysing responses and are exploring the issue further, including with energy suppliers and other stakeholders.

We understand that not all EU member states are intending to compensate their energy intensive industries for the indirect costs for the EU ETS and those that will are still developing their proposals and have not published details.

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