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Commission approves €790 million Romanian state aid measure to support closure of coal mines in Jiu Valley

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The European Commission has approved, under EU state aid rules, a €790 million (approximately RON 3.9 billion) Romanian measure to cover exceptional costs arising from the closure of the four uncompetitive coal mines of Lonea, Lupeni, Livezeni and Vulcan in the Jiu Valley.

The measure will help Romania to phase out coal by 2032 in line with its binding commitment under its national Recovery and Resilience Plan and Territorial Just Transition Plan. The beneficiary will be Societatea Complexul Energetic Valea Jiului S.A. which manages the four mines and the Paroseni power plant with the objective of closing the mining activity.

The measure covers (i) social costs for workers who have lost, or will lose, their jobs due to the closure of the mines, and (ii) costs related to the safety and remediation works necessary for the closure of the four mines, in particular to secure mine shafts, repair damage to the environment caused by mining and re-cultivate land after the closure of the four mines. The aid covers eligible costs incurred from 1 October 2023 to 31 December 2032.

The Commission assessed the measure under EU state aid rules and in particular Article 4 of the Council Decision 2010/787/EU on state aid to facilitate the closure of uncompetitive coal mines. The Commission found that the measure is compatible with the internal market as the aid does not exceed the exceptional costs, not related to current production, arising from the orderly and irrevocable closure of the four mines by 2032 at the latest.

Executive Vice President Margrethe Vestager, in charge of competition policy, said: “The measure we have approved today will help Romania to carry out the necessary safety and rehabilitation works in order to facilitate the mine closure and ensuring that no one is left behind in the green transition. It will also help alleviate the social impact of the closures.”

A press release is available online.

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