Do you want to share views about the EU’s State aid guidelines on climate, energy and environment?

The European Commission today published its long awaited public consultation of its revised Energy and Environmental State aid guidelines. This is an opportunity for stakeholders to provide comments on a tool in the EC’s toolbox that will play a key role in shaping the billions of public support that Member States are about to fork out to foster a green transition.

Already before the Covid-19 pandemic, we heard a steady drumbeat of calls for the EC to be bolder in using State aid policy to promote sustainability. This trend was further reinforced by the EU’s ambitious Green Deal. As part of these political winds on climate change, the revised guidelines are expected to act as catalysts to foster further green investments, including in renewable energy sources such as hydrogen.

As an illustration of the direction of travel, the EC will rename the guidelines to Climate, Energy and Environmental State aid guidelines. The draft covers flagship areas such as clean mobility infrastructure, resource efficiency and all technologies that can deliver the Green Deal. Today’s proposal also introduces new aid instruments, such as Carbon Contracts for Difference. The draft also includes rules to facilitate the phasing out of fossil fuels. At a first glance, the EC seems to be holding both Member States’ and companies’ feet to the fire; to approve public funding, the EC wants a genuinely green agenda.

The EC invites interested parties to respond to the consultation by 2 August 2021 and will also discuss the draft with Member States. The adoption of the new guidelines is expected for the end of 2021. We will continue to monitor this legislative proposal on this blog as well as on our dedicated competition law blog, LinkingCompetition.