Carbon leakage relief will also be available for energy-intensive companies in the future
Vienna (PK) – From 2027, national CO2 pricing will be replaced by the EU ETS II. The first reporting obligations under the EU ETS II will start in 2025.
In addition to the EU trading system for emissions certificates (EU-ETS I), a second emissions trading system (EU ETS II) was introduced in the Emissions Certificates Act. EU ETS II affects emissions from road traffic, buildings and companies that, due to their size, are not subject to the Union-wide system for recording and limiting greenhouse gas emissions (EU ETS I). The ÖVP and the Greens brought in National Council submitted an amendment, which creates the conditions for transferring the National Emissions Certificates Trading Act 2022 to the EU ETS II. If there is a one-year postponement of the EU ETS II, including the first release of emissions certificates by the European Commission, the amendment proposal provides for the switch from December 31, 2027. In addition, carbon leakage relief should also be accessible to energy-intensive companies in the future. The amendment also provides relief for agriculture and forestry. Only the two government parties, the ÖVP and the Greens, voted for the amendment.
With the votes of the ÖVP, Greens and FPÖ, changes to the Financial Equalization Act 2024 were also implemented. Specifically, this concerns promotional loans to natural persons via the Austrian Federal Financing Agency (OeBFA loan) as part of the “Housing and Building Offensive”.
Carbon leakage relief will also be available for energy-intensive companies in the future
National emissions certificate trading will end with the transfer to the EU ETS II on December 31, 2026 or December 31, 2027. Peter Haubner (ÖVP) was convinced that the transfer of national CO2 pricing into the European emissions trading system should be carried out smoothly and with little administration. The novella is based on one Initiativantrag from the ÖVP and the Greens. Jakob Schwarz (Greens) was pleased to say that what has already been implemented in Austria will be expanded at the European level.
As part of the eco-social tax reform and the introduction of national pricing of greenhouse gas emissions, relief measures for affected companies were implemented in the NEHG 2022. In order to achieve the necessary EU conformity, adjustments to the relief measures are now necessary, explained Peter Haubner (ÖVP). The carbon leakage regulation will therefore be merged with the hardship regulation and will also be open to energy-intensive companies in the future. In order to avoid carbon leakage, to maintain cross-border competitiveness or to avoid particular hardship cases, energy-intensive companies can submit an application to the responsible authority for partial relief from the additional burden. The amount of relief granted is determined by the relevant authority. This measure is only available for energy sources used for heating purposes.
The amendment also provides for relief for agriculture and forestry. €43 million is planned for 2024 and €53 million for 2025.
Opposition criticizes approach and budget policy
Michaela Schmidt (SPÖ) criticized the disrespectful approach – towards the opposition – by means of amendments without discussions in the committee or assessment and warned of problems with implementation. While fuel for farmers will be subsidized, nothing will be done for tenants and commuters, she said.
Axel Kassegger (FPÖ) accused the federal government of the measures not being well thought out and spoke of a planned economy. The law cannot be approved. He advocated moving forward to create security for Austrian industry. The Austrian emissions trading has nothing to do with a planned economy, Schwarz countered the FPÖ.
The NEOS saw a lot of good things in the package, Karin Doppelbauer (NEOS) acknowledged the Europe-wide certificate trading, the market-compliant tool and the Europe-wide standardization. She did not approve the amendment due to the 15-page amendment. You can’t work in parliament like that. She wanted to start with the Electricity Price Compensation Act to support the industry.
Kai Jan Krainer (SPÖ) criticized the federal government’s budget policy. The budget is being heavily burdened by the National Council’s decisions and is getting out of control, he pointed out the structural deficit. Krainer appealed to stop “burning money.”
Changes in the Financial Equalization Act 2024 for OeBFA loans
A change in the 2024 Financial Equalization Act led to a broad discussion in the National Council about the housing and construction package. Specifically, changes to promotional loans to natural persons via the Austrian Federal Financing Agency (OeBFA loan) are implemented as part of the “Housing and Building Offensive”. The condition for the granting of special-purpose grants amounting to one billion euros is that these federal funds are used by the state in the years 2024 to 2026 in addition to the housing subsidies financed from state funds. According to the current legal situation, this also applies to OeBFA loans. This provision now no longer applies to OeBFA loans. ÖVP, Greens and FPÖ voted for the measure. There was feedback from the states that additionality was problematic, explained Lukas Brandweiner (ÖVP), the loss of the OeBFA loans.
Andreas Ottenschläger (ÖVP) emphasized that the housing and construction package would be preceded by many constructive discussions with the social partners. The aim of the package was to support the construction industry and thereby secure jobs. They also want to improve the quality of existing apartments and make it possible to create affordable living space.
Nina Tomaselli (Greens) was convinced that the balanced housing and construction package guarantees affordable housing in the long term. The federal states are responsible for housing construction, she warned that the funds from housing subsidies should be used accordingly.
Criticism from SPÖ, FPÖ and NEOS
The “housing billion” has not reduced a single rent in Austria, according to Philip Kucher (SPÖ), who called for a rent cap. He accused the ÖVP of exploding housing prices while the banks were making billions in profits. Christian Oxonitsch (SPÖ) submitted an amendment in which he advocated for municipal housing by wanting to make the special-purpose grants for new buildings accessible to municipal housing in addition to non-profit building associations and commercial developers. He also advocated that unused grants can be used in full in the next two years. The amendment remained in the minority.
A motion for a resolution with which Kai Jan Krainer (SPÖ) advocated for the right to an analogue life also failed to find a majority. In this sense, he called for all official channels that are currently only accessible via ID Austria or digitally to ensure that people who do not have a smart phone or internet access also have access to them. In contrast, Klaus Lindinger (ÖVP) considered ID Austria to be reasonable. If necessary, people get support in the communities, he defended the measure.
NEOS criticized that tax money was being distributed with a lump sum. Karin Doppelbauer (NEOS) referred to the current economic forecast, according to which, in her opinion, the package will not achieve anything. Although the original concern is shared, Doppelbauer expects prices to rise.
Despite the FPÖ’s approval, Maximilian Linder (FPÖ) expressed criticism. The construction offensive is important, he emphasized, but referred to empty apartments due to the need for renovation or excessively high rental prices. Linder advocated lowering rents and making housing associations responsible.
No majority for NEOS’s request for a deadline
However, NEOS’s motion to set a deadline for the motion for a resolution did not find a majority Extension of the Electricity Price Compensation Act 2022. The NESO wanted to give the Economic Committee a deadline of June 7th, 2024.
The NEOS used today’s National Council meeting to submit a request for a separate audit by the Court of Auditors in connection with espionage incidents. The Court of Auditors should review and assess all measures to prevent foreign espionage in the Interior, Foreign and Defense Ministries since December 18, 2017.
The National Council will hold first readings on the following four referendums: Referendums ” No joining NATO “, referendum” Don’t throw away food!”, referendum ” Ban glyphosate!”, referendum ” No to nuclear power greenwashing “. (Conclusion of the National Council) gla
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