NEW EU RULES TO PHASE OUT GREEN ENERGY SUBSIDIES

04/14/2014

New EU rules published April 9 will replace green energy subsidies with market-based schemes. The rules will address “market distortions” that may result from renewable energy subsidies such as feed-in tariffs, which have spurred investment in renewables, with competitive bidding processes. Some critics see the rules as favoring business at the expense of consumers. Certain energy-intensive industries, such as chemicals, metals, and paper, would be exempt from charges levied for the funding of renewable energy. The European Green Party fears that the exemptions mark the end of the EU’s climate and energy ambitions; Green Party co-chair Reinhard Butikofer lamented that “the more energy-intensive an industry is, the more exemptions it receives.” He noted that energy-efficient companies and consumer households will be most hurt by the new rules.For the full story, see http://uk.reuters.com/article/2014/04/09/us-eu-funding-energy-idUKBREA3812C20140409 and http://www.industryweek.com/regulations/new-eu-rules-curtail-state-support-renewable-energy-shield-energy-intensive-industries.