THE GOVERNMENT'S PROPOSAL to provide energy-intensive industries with a tax break to compensate for their higher energy costs have been approved by the European Commission.
The UK's carbon price floor, which levies £9.55 per tonne of carbon dioxide is designed to reduce companies' greenhouse gas emissions.
The compensation, Reuters reports, partially offsets the higher electricity costs, "similar to the EU Emission Trading Scheme," the commission found.
The measure will "further EU energy objectives without unduly distorting competition", it added.
The plan would see the government reimburse industries such as steel, paper, plastics and chemicals up to 80% of the costs derived from the carbon price floor and the EU ETS.
However, other industries including cement, ceramics and glass miss out on the relief after the commission ruled they are less exposed to higher costs.
Sign up for Financial Director email alerts
Please enter your email below to receive your profile link
Search by job title, salary, or location - we only list senior financial roles
Our panel of experts explore the major pension pain points and discuss what actions finance professionals should be taking in order to alleviate them
This Financial Director web seminar with Anaplan, the planning cloud for sales, finance, operations, and HR discusses how businesses can use enterprise data
Send to a friend