EU Emissions Trading System and Carbon Price Support: apply for compensation
How to apply for compensation for the indirect costs of the EU Emissions Trading System (EU ETS) and the Carbon Price Support (CPS) mechanism.
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Participants in the EU Emissions Trading System (EU ETS) must still comply with their obligations for the 2020 compliance year. For more information, see guidance on EU ETS obligations in 2021.
From 1 January 2021 businesses subject to the new UK Emissions Trading Scheme (UK ETS), which is of the same scope as the EU ETS it replaces, should prepare to comply with the new scheme. Read the guidance on Participating in the UK ETS.
The European Union Emissions Trading System (EU ETS) and Carbon Price Support (CPS) mechanism are designed to reduce emissions. The government recognises that the costs of these schemes have a particular impact on some Energy Intensive Industries (EIIs). The government has established a compensation scheme in line with State Aid guidance.
This guidance sets out how businesses can claim compensation for the indirect costs of EU ETS and CPS. It includes information on:
- who can apply
- how to apply
- data required
- the formula government uses to calculate compensation
Download the application forms and compensation calculation spreadsheets. Email your completed forms to energyintensiveindustries@beis.gov.uk.
Updates to this page
Published 20 May 2013Last updated 7 January 2020 + show all updates
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Guidance updated to include state aid requirements in relation to 'undertakings in difficulty (UID)'.
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First published.