Fuel subsidies under the Carbon Leakage Regulation

Gütegemeinschaft has had an investigation carried out to determine whether the conditions for fuel subsidies for subsector 22.21.10 (manufacture of PVC profiles) are fulfilled.

Due to sharply increased energy prices and national fuel emissions trading, companies that are particularly exposed to international competition are burdened with higher costs. These can lead to discussions about a migration to countries outside the EU, resulting in the loss of jobs.

To counteract this, the German government grants fuel subsidies if certain criteria are met. These first and foremost is the national carbon leakage indicator, which must exceed a threshold value of 0.1. Furthermore, the revenue share of the data collective must be more than 50 per cent of the sector in question in order to be listed. It is still possible to apply for retrospective registration until 28 April 2022.

For this purpose, Gütegemeinschaft has had it investigated whether the conditions for registration of sub-sector 22.21.10 (manufacture of PVC profiles) are met. According to the current data situation this is not the case, consequently a subsequent recognition is not very promising. The result is determined by the predominant use of electricity as an energy source and a comparatively low emission factor as a result; fuels are mainly used for heating and not for production purposes. Similar results were also determined for the superordinate sector 22.21 "Sheets, films, hoses and profiles of plastics".

Image: ©iStock.com/Galeanu Mihai

Image: ©iStock.com/Galeanu Mihai