The EU s transition t o lo wcarbon energy supply and ensuring int ernationally c ompetitiv e pric es for the EU manufacturing industry EU Member States can c ompensate some c ompanies in sectors with high electricity c onsumption electr ointen siv e users for part of the higher electricity c osts arising fr om the EU emissions trading scheme The c ompensation granted in c omplianc e with the ETS State Aid Guidelines minimises the risk of carbon leakage which oc curs when emission c osts cause EU c ompanies to r elocate their pr o duction to nonEU c ountries that ha v e less ambitious cli mate measur es The rules allowing for c ompensation will be updated to ensur e that they ar e adapted to the new emissions trading scheme for 2021 2030 The curr ent Guidelines date fr om 2012 and will expir e on 31 Dec ember 2020 They ther efor e must be r evised for the next period starting on 1 January 2021 to c omply with the latest ETS pr o visions The r evision pr oc ess launched in 2019 included a series of targeted and general public c on sultations allowing inter ested parties to pr o vide their feed back and experienc es of the implementation of the State aid rules r elated to the Emission T rading System ETS and their views r eg arding the design of the futur e ETS guide lines The c onsultation also aimed at c ollecting on a vail able policy options to addr ess the risk of carbon leakage due to indir ect emission c osts while pr eserving the inc en tiv e of the EU ETS for a c ost effectiv e decarbonisation of the ec onom y and minimising c ompetition distortions in the internal mark et E ur omines participated at all public c onsultations F ebru ary and Ma y 2019 as well as in the targeted c onsultation April 2019 by pr o viding the nec essary information for the determination of sectors exposed to carbon leakage risk due to the indir ect emissions c osts and the empirical information enabling for the determination of the lev el of c ompensation that should be granted to sectors exposed to carbon leakage risk due to indir ect emissions c osts The mineral raw materials industry is one of the most electrified industries in the global industrial pr oduction exposed to a significant risk of indir ect carbon leakage and should ther efor e be eligible for indir ect emission c osts c ompensation The mineral raw materials sectors ar e pric etak ers operating in a c ompetitiv e global mar k etplac e unable to pass thr ough indir ect emissions c osts to downstr eam c onsumers F or most of these subsectors such as the mining of ir on or e and the mining of nonfer r ous metals pric es ar e set at global mark et lev el and f all outside the c ompan y c ontr ol Additionally to the inter nationally set pric es E ur ope has a significant import de pendency for all metal or es and c onc entrates including 100 import r elianc e for sev eral specialty metals and rar e earths 1 1 E uropean C ommission Critical Ra w Materials factsheet 17 OECD Measuring distortions in international mark ets the aluminium value chain 2019 Table of Contents page 29 of 35 S ustainabi li ty and Competi ti veness