AOBE POSITION ON THE MECHANISM FOR OFFSETTING THE INDIRECT CARBON COSTS OF INDUSTRIES AND SUB-INDUSTRIES

The Association of the Organizations of Bulgarian Employers (AOBE) has sent a position to the ministries of economy and industry, finance, energy and environment regarding the introduction of a mechanism to offset the indirect carbon costs of sectors and sub-sectors deemed to be at risk of carbon leakage for Phase IV of the European Emissions Trading Scheme.

Offsets for indirect carbon dioxide emissions costs for Phase IV of the ETS (2021-2030) have already been notified by 15 EU Member States: Spain (SA.100004), Portugal (SA.100103), Czech Republic (SA.100159), Germany (SA.100559 ), Romania (SA.102431), the Netherlands (SA.102626), Slovakia (SA.102712), Greece (SA.103180), Belgium for the Flanders region (SA.103704), Slovenia (SA.63525), Italy (SA.60787), Finland (SA.63581), Luxembourg (SA.63709), Poland (SA.64719) and France (SA.63404).

The notifications have been made under the Guidelines on certain State aid measures in the context of the post-2021 greenhouse gas emission allowance trading scheme (2020/C 317/04) (the Guidelines), which specify the eligible sectors and sub-sectors, how the compensation mechanism is to be calculated and applied, and the requirements for potential beneficiaries.

The adoption of a mechanism for compensation for the indirect costs of carbon dioxide emissions in Bulgaria will level the playing field between Bulgarian industry and European industry.

AOBE supports the introduction of an indirect carbon offset mechanism for industries and sub-industries at risk of carbon leakage for Phase IV of the ETS (2021-2030), subject to the certain conditions.