The European Commission has approved state aid schemes in Austria and Spain to compensate energy-intensive companies for indirect carbon costs. These measures aim to prevent carbon leakage, where firms move production to regions with weaker climate laws to avoid the costs of the EU Emission Trading System (ETS). Austria's plan provides refunds of up to 75% of emissions costs, provided companies reinvest 80% of the aid into decarbonization. Spain is expanding its eligibility to more sectors and increasing aid intensity to 80%. These steps come as the EU prepares for a comprehensive review of the ETS in 2026.
