Reporting of indirect cost compensation payments made to industry in the UK in 2020
Published 30 November 2021
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1. Article 10a(6) of the revised EU Emissions Trading System Directive, which took effect on 8 April 2018, requires member states to publish annually, from 2018, the amount of compensation paid to sectors exposed to ‘genuine risk of carbon leakage due to significant indirect costs that are actually incurred from greenhouse gas emission costs passed on in electricity prices’.
2. The Department for Business, Energy and Industrial Strategy has set out below the total amount of compensation paid as a result of indirect costs resulting from the EU ETS in 2020.
3. As the total compensation is less than 25% of UK EU ETS auction revenue in the relevant year, this does not trigger the additional member state reporting requirement detailed in paragraph 2 of Article 10a(6).
EU ETS Indirect Cost Compensation awarded in 2020 (£ Sterling)
| Sector | Number of Businesses | EU ETS compensation |
|---|---|---|
| Iron & Steel | 10 | 28.7 million |
| Chemicals | 11 | 26.8 million |
| Paper | 30 | 19.2 million |
| Non-ferrous metals | 6 | 0.8 million |
| Other | 3 | 0.8 million |