EU endorses new state aid guidelines for climate, environmental protection and energy

The guidelines include sections to support the decarbonisation of the economy in a ‘broad and flexible manner’ open to all technologies that can contribute to the European Green Deal

Big Zero Report 2022

The European Commission has endorsed new state aid rules that support projects for environmental protection, including climate protection and green energy generation.

The Guidelines on state aid for climate, environmental protection and energy (CEEAG), which will be formally adopted this month, includes sections to support the decarbonisation of the economy in a “broad and flexible manner” open to all technologies that can contribute to the European Green Deal.

That includes renewable energy, energy efficiency measures, aid for clean mobility, infrastructure, circular economy, pollution reduction, protection and restoration of biodiversity as well as measures to ensure security of energy supply.

The rules aim to help member states meet their ambitious EU energy and climate targets, at the least possible cost for taxpayers and without distorting competition in the Single Market.

The Guidelines also aim to facilitate the participation of renewable energy communities and SMEs as important drivers for the green transition.

Executive Vice President Margrethe Vestager, in charge of competition policy said: “Europe will need a considerable amount of sustainable investments to support its green transition. Although a significant share will come from the private sector, public support will play a role in ensuring that the green transition happens fast.

“The new Guidelines endorsed today will increase everything we do to decarbonise our society. Among others, they will facilitate investments by Member States, including in renewables, to accelerate the achievement of our Green Deal, in a cost-effective way. This is a major step to ensuring that our State aid rules play their full role in supporting the European Green Deal.”

Once formally adopted, the CEEAG will replace the existing Energy and Environmental State aid guidelines (EEAG) and will apply to any decision taken by the Commission.

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