Commission invites interested parties to provide comments on proposed draft Climate, Energy and Environmental state aid guidelines

The European Commission has launched a targeted public consultation inviting all interested parties to comment on the proposed revision of the Guidelines on state aid for environmental protection and energy (‘Energy and Environmental state aid guidelines' or EEAG). To cater for the increased importance of climate protection, the revised guidelines will go under the name of Climate, Energy and Environmental State aid guidelines (‘CEEAG'). The proposed Guidelines also include compatibility rules for flagship areas like clean mobility infrastructure and biodiversity, as well as resource efficiency to support the transition towards a circular economy. Interested parties can respond to the consultation for eight weeks, until 2 August 2021. The Commission has conducted an evaluation of the current Guidelines as part of the State Aid Fitness Check.

The evaluation revealed that the current provisions of the Guidelines work well, they are overall fit for purpose and are an effective tool when it comes to supporting the achievement of the EU's environmental goals and climate targets, while limiting undue distortions in the Single Market. At the same time, the evaluation showed that some targeted adjustments, including simplifying and updating certain provisions and extending the scope of the Guidelines to cover new areas such as clean mobility and decarbonisation may be needed and that the current rules may need to be aligned with the Commission's strategic priorities, in particular those of European Green Deal, and with other recent regulatory changes in the energy and environmental areas. In this context, the Commission is proposing a number of changes to the current rules. The draft Guidelines and all other information about the public consultation, including more details about the proposed changes, are available online.

The adoption of the new Guidelines is foreseen for the end of 2021. Executive Vice President Margrethe Vestager (pictured), in charge of competition policy, said: “Europe will need a considerable amount of sustainable investments. Although a significant share will come from the private sector, public support will play a role in ensuring that the green transition happens fast. So we want to make sure that our rules on state aid for climate, energy and environment are ready and fit for the green transition. The revised rules will enable member states to fulfil the EU's ambitious environmental objectives of the European Green Deal, while keeping possible competition distortions to a minimum. We now invite all interested parties to share their views.” A full press release is available online.

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