To ask the Secretary of State for Trade and Industry what discussions she has had with EU colleagues regarding EU approval for the exemption from the Climate Change Levy of the coal mine methane industry; and if she will make a statement. [98508]
The use of coal mine methane directly as a fuel in industrial processes is already exempt from the Climate Change Levy. The Department of Trade and Industry have submitted a State Aid Application to the European Commission for exemption from the Climate Change Levy for electricity produced from coal mine methane. The commission has opened an investigation under Article 88(2) of the Treaty to determine whether the proposed aid is approvable. They will be inviting comments from member states and interested parties. We have received the formal notification of this decision from the commission and DTI officials are currently preparing an initial response and considering what other action will be necessary to secure the State Aid Approval.