Source: European Parliament
1. Installations producing ceramic tiles are covered by the EU Emissions Trading System (ETS). They receive free allocation on the basis of the spray-dried powder benchmark and of fall-back benchmarks for the processes not covered by the spray-dried powder benchmark. In this context, heat generated by means of combined heat and power (CHP) systems is rewarded by free allocation. In addition, operators of CHPs benefit from the ETS carbon price included in the electricity price, in particular as additional revenue for the electricity sold on the market. Therefore, the Commission does not see a need to change the current rules providing both, carbon leakage protection and incentives to invest into innovative low-carbon technologies including CHPs.
2. The ceramics sector is energy-intensive for the production processes as well as trade-intensive. Therefore, it is considered at risk of carbon leakage and therefore eligible to receive free allowances at 100% of benchmark level in line with Commission Delegated Decision (EU) 2019/708[1] for the period 2021-2030. Member States may award state aid to electro-intensive industries to compensate for the cost of carbon emissions passed on through electricity bills (indirect cost compensation). However, the eligibility threshold set for this aid is an indirect emission intensity of at least 1 kg CO2/EUR, which was not reached for sector 23.31 (Manufacture of ceramic tiles and flags) when the eligibility was assessed as part of the 2020 adoption of the relevant Commission guidelines[2]. The sector is therefore not currently eligible for this aid.