IOGP response to the roadmap on the modification of the General Block Exemption Regulation (GBER)

April 2021

This document provides IOGP’s response to the roadmap on  the modification of the General Block Exemption Regulation (GBER) for the Green Deal and the Industrial and Digital Strategies.

Context

National governments usually require EU approval for subsidies to domestic businesses, to avoid giving them an unfair advantage over other EU competitors. Under the GBER, certain subsidies can be exempt.

IOGP believes that the State aid framework, including the GBER, should facilitate investments in promising, innovative and scalable technologies that facilitate large-scale carbon emission reduction and management projects while maintaining the functioning of the internal energy market.

Regulations and exemptions should be aimed at allowing for European industries to deliver the scale of projects required to meet the EU’s climate objectives, while, as a priority, maintaining competitiveness and a level playing field, and at the same time retaining key skills within the employment pool and attracting new talent.

Key Points

  • The GBER should reflect new developments in CCS business models and related technologies
  • Renewable and low-carbon gases, including hydrogen, should be incorporated in the GBER in a technology neutral manner
  • The role of natural gas to support the transition should be recognized
  • Assess notification thresholds and aid intensities in consideration of the significant investments required, including research and innovation
  • Defining positive environmental benefits
  • Modification of the definition of “energy infrastructure” in relation to gaseous fuels
  • Modification of the Regulation as regards incentive effect

Overview

  • Summary of recommendations
    • Reflecting new developments in CCS business models and related technologies
    • Incorporating renewable and low-carbon gases, including hydrogen, in a technology neutral manner
    • Recognizing the role of natural gas to support the transition
    • Assessing notification thresholds and aid intensities for environmental protection and research and innovation
    • Defining positive environmental benefits
    • Modification of the Regulation in terms of incentive effect
  • IOGP’s preliminary proposals for modifications of the GBER

Author

IOGP

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