L 277/250
EN
4.1.2.2.
Official Journal of the European Union
27.10.2022
O t h er ai d for t h e re d uct ion a nd r em ova l of gre en hou se ga s em i ss io ns and e ne rg y e ff ic i en cy
83.
All technologies that contribute to the reduction of greenhouse gas emissions are in principle eligible, including aid for the production of low-carbon energy or synthetic fuels produced using low-carbon energy, aid for energy efficiency including high-efficiency cogeneration, aid for CCS/CCU, aid to demand response and energy storage where this reduces emissions, and aid for the reduction or avoidance of emissions resulting from industrial processes, including the processing of raw materials.
It also covers support for the removal of greenhouse gases from the environment.
This Section does not apply to measures whose primary objective is not the reduction or removal of greenhouse gas emissions.
Where a measure contributes to both the reduction of greenhouse gas emissions and the prevention or reduction of pollution other than from greenhouse gas emissions, the compatibility of the measure will be assessed on the basis of this Section or Section 4.5, depending on which of the two objectives is predominant.
84.
This Section also covers dedicated infrastructure projects (including for hydrogen, other low-carbon gases and carbon dioxide for storage/use) that do not fall under the definition of energy infrastructure, as well as projects encompassing a dedicated infrastructure or energy infrastructure, or both, combined with either production or consumption/use.
85.
To the extent that aid facilitates investments to improve the energy performance of industrial activities, this Section also applies to aid to SMEs and small mid-caps that are providers of energy performance improvement measures, for the facilitation of energy performance contracting within the meaning of Article 2, point (27), of Directive 2012/27/EU.
86.
Aid for energy generation from waste may be found compatible under this Section to the extent it is limited to waste used to fuel installations that fall under the definition of high-efficiency cogeneration.
87.
Aid for the production of low-carbon hydrogen may be assessed under this Section.
88.
Aid to support electrification using renewable electricity and/or low-carbon electricity may also be assessed under this Section, including support for heating and industrial processes.
4.1.3.
Minimisation of distortions of competition and trade
4.1.3.1.
N ec es s it y of th e a i d
89.
Points 34 to 37 do not apply to measures for the reduction of greenhouse gas emissions.
The Member State must identify the policy measures already in place to reduce greenhouse gas emissions.
However, while the Union’s ETS and related policies and measures internalise some of the costs of greenhouse gas emissions, they may not yet fully internalise those costs.
90.
The Member State should demonstrate that aid is needed for the proposed activities as required under point 38, taking into account the counterfactual situation (55) as well as relevant costs and revenues including those linked to the ETS and related policies and measures identified in point 89.
Where there is significant uncertainty concerning future market developments related to a large part of the business case (as for example may be the case for renewable energy investments where electricity revenues are not coupled to input costs), support in the form of a certain guaranteed remuneration to limit exposure to negative scenarios may be considered necessary to ensure that the private investment takes place.
In such cases, limits to profitability and/or clawbacks linked to possible positive scenarios may be required to ensure proportionality.
(55) The counterfactual is the activity that would have been carried out by the beneficiary in the absence of aid.
In some decarbonisation cases this may involve an investment in a less environmentally-friendly alternative.
In other cases no or delayed investment may be involved, but it may for example involve operating decisions that would deliver lesser environmental benefit, such as the continuing operation of existing onsite facilities and/or the purchase of energy.