EU gives Member States the green light to help energy-intensive businesses
The European Commission is authorising Member States to provide energy-intensive companies with at times significant State aid to offset certain costs.
A case in point is Germany, who authorised to shell out €27.5 billion to compensate for the indirect costs of such companies, and thus avert the risk of relocations to countries with less ambitious climate policies.
Such relocations would result in global increases in greenhouse gas emissions, a phenomenon known as "carbon leakage", the European executive explained.
Many other Member States can take advantage of this flexibility. This is the case of Finland and the Netherlands, who received the green light from the Commission for similar compensatory schemes.
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