Electrification aid for energy-intensive industries

Country / jurisdiction: Finland · Year: 2022 · Status: In force · Level: National · Type: Voluntary

Electrification aid can be granted to energy-intensive industries, i.e. industries that use a large amount of energy, in 2022–2026. The practices related to the electrification aid are defined in the government decree. Companies operating in the sectors entitled to the aid must apply for the 2022 aid by the end of September.

The Government issued the decree on the electrification aid for energy-intensive industries on 8 July 2022. The decree complements the act that entered into force on 1 July 2022. The aid will compensate certain energy-intensive industries for indirect costs caused by emissions trading that affect the price of electricity. The objective is to safeguard the cost competitiveness of industry and prevent the risk of carbon leakage. The aid targets costs that non-EU competitors of companies operating in the international market do not have. It is estimated that there are just over 30 companies and about 70 plants entitled to the electrification aid in Finland.

The decree now issued defines the way the companies can apply for the aid, how the amount of aid is calculated and how its use is monitored. The decree also lays down the terms of development measures to promote carbon neutrality. The decree will enter into force on 11 July 2022.

Official source: https://valtioneuvosto.fi/en/-/1410877/operators-in-energy-intensive-industries-can-apply-for-electrification-aid-in-2022-2026