12 November 2025 – EUREC, along with a coalition of civil society organisations, cleantech innovators, investors, industry associations, and researchers, has signed a joint letter sent to Executive Vice-President Teresa Ribera, Commissioner Wopke Hoekstra, and senior officials in DG CLIMA and DG COMP, warning that proposed reforms to the EU’s ETS State Aid Guidelines could undermine Europe’s climate ambitions by diverting billions in carbon revenues away from decarbonisation.

How is offering State Aid for companies using carbon-intensive electricity compatible with Member States’s responsibility under Art 19a of the Internal Market for Electricity Regulation to “promote the uptake of [renewable energy power purchase agreements, PPAs], including by removing unjustified barriers and disproportionate or discriminatory procedures or charges, with a view to providing price predictability and reaching the objectives set out in their integrated national energy and climate plans with respect to the decarbonisation dimension”?

“Compensation via State Aid for using carbon-intense electricity” is manifestly “an unjustified barrier to PPAs”. Companies should sign PPAs to power their operations, instead of relying on the taxpayer to bail them out.

If indeed “PPAs remain at the centre of our policy,” as Lukasz Kolinski, Director at the DG ENER’s Directorate C ‘Green Transition and Energy System Integration’ claimed at a major gathering on PPAs just a week ago, then updating the emissions factors used to calculate compensation to reflect the increasing extent to which variable RES set the price should be an interim measure before scrapping this miserable subsidy for fossil fuel use entirely.

Read the full letter here.