BEHG Hardship Compensation: Equity Payments to Companies to Avoid Unreasonable Hardship from National Fuel Emissions Trading

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Who is funded

This guideline aims to support companies in Germany that are exposed to unreasonable financial hardship due to the introduction of national fuel emissions trading. Funding is available for businesses whose existence is threatened by additional costs and who cannot avoid or pass on these burdens. The program is limited to companies that meet specific criteria for economic distress and are not considered "undertakings in difficulty" within the meaning of EU guidelines.

What is funded

The program funds additional financial burdens incurred by companies in the billing years 2021 to 2026 through the procurement of fuels as well as the procurement of goods or imported heat within the framework of national fuel emissions trading. The funding covers the additional costs proven to be "unavoidable" that would make continued business operations impossible.

Type and Scope of Funding

BEHG hardship compensation is granted as a non-repayable grant covering 100 percent of the calculated eligible expenses. Actual disbursement depends on available budget funds and may be proportionately reduced if these are insufficient. Cumulation with other aid is possible, subject to EU cumulation rules.

Conditions and Requirements

To claim BEHG hardship compensation, companies must demonstrate in detail that "unreasonable hardship" exists, which makes their continued business operations impossible. This includes submitting hypothetical financial statements and evidence of the unavoidability of the burden. The program is subject to the De minimis aid rules and the Federal Budget Code, as well as transparency and auditing obligations.

Application Procedure

The application procedure for BEHG hardship compensation is carried out electronically via the website of the German Emissions Trading Authority (DEHSt). Applications must be submitted for each billing year by July 31 of the following calendar year. The application details must be audited by qualified third parties, and approval depends on the state aid approval of the EU Commission if the De minimis thresholds are exceeded.

Legal Basis

The "BEHG Hardship Compensation" is based on the guideline of July 17, 2023, and is granted on the basis of § 53 of the Federal Budget Code (BHO). The program is also subject to other relevant laws and regulations, such as the Administrative Procedure Act, the De minimis Aid Regulation, and the Subsidy Act, which govern the implementation and administration of the aid.