EVENTS

Policy Horizon – State Aid: ETS Indirect Carbon Cost Compensation & CISAF – Opportunities for the Chemical Industry

Rounding out 2025, on 23 December, the European Commission delivered on one of our industry’s key asks: reintroducing organic chemicals, alongside other chemical sectors in the ETS Indirect Cost Compensation Guidelines.

Persistent high energy costs are driving deindustrialisation in the EU. State aid provides one of the few available levers for immediate support to industries, until more structural measures can drive down energy costs.

The EU Commission has put in place several legal frameworks for aid, subject to conditionality criteria. These frameworks provide Member States with the possibility to reduce the impact of electricity costs on energy-intensive industries. The recently approved ETS state aid guidelines allow Member States to compensate industry sectors vulnerable to carbon leakage for part of the carbon-related costs in electricity prices.

Nicolai Romanowski and Hadi Yassin from the Cefic Climate Change & Energy team will explain how these support measures can work and their interplay with the Clean Industrial State Aid Framework (CISAF) and other previously published instruments by the European Commission. In particular, they will provide:

  • An overview of ETS Indirect Carbon Cost Compensation and its relevance for the industry.
  • Insights into CISAF and ETS mechanisms;
  • Demonstration of a Cefic tool that can help calculate optimal compensation scenarios;
  • Overview of the next steps to ensure companies receive financial compensation from national governments where they operate.

Join us to learn about the updated guidelines and how industry can leverage these tools.