Indirect Cost Compensation ETS (IKC-ETS)
Pays energy-intensive Dutch manufacturers back for the EU carbon-price costs in their electricity bill.
How much CO2 reduction the reduction programme has to promise isn't fixed at one number: a first-time applicant needs a minimum 3% annual cut against a fixed historical baseline, but that minimum rises to 6%, 9% or 12% depending on how many of the three most recent award rounds the applicant already received IKC-ETS support in. A company that genuinely can't hit its required percentage can submit …
IKC-ETS is for companies in a fixed list of energy-intensive industries at risk of 'carbon leakage' — sectors like iron and steel, aluminium and other metals, paper and pulp, glass, industrial chemicals and fertilisers, named by specific NACE codes. It compensates the higher electricity costs these firms face because EU power producers pass on their EU ETS carbon-permit costs.
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