EU nod for Romania’s tax caps for large energy users

The European Commission has approved Romania’s proposals to reduce its green tax for energy intensive users. The green certificate reduction scheme gives partial compensation to major energy users for the […]

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By Priyanka Shrestha

The European Commission has approved Romania’s proposals to reduce its green tax for energy intensive users.

The green certificate reduction scheme gives partial compensation to major energy users for the cost of financing renewable energy support in the country.

The Commission assessed it under the provisions of its new Energy and Environmental Aid Guidelines adopted in April this year and said it is “in line with EU state aid rules”.

Joaquín Almunia, Commission Vice President in charge of competition policy said: “The Romanian scheme enables companies that are both electro-intensive and exposed to international trade to remain competitive without unduly distorting competition in the Single Market.

“It will support Romania in reaching its 2020 climate targets whilst at the same time appropriately addressing the risk of carbon leakage.”

The scheme will come into force this December.