"The State aid guidelines are a significant contribution to Energy and Climate Change policy in the Union and to the continuing process of the State aid reform. This is a win-win opportunity for the Member States to finance environmental projects and for economic growth in the EU."
Neelie Kroes, Commissioner for competition.
Energy
Energy and Climate Change
The proposed new policy
In January 2008 the Commission has put forward a package of ambitious proposals on renewable energy and climate change.
Those proposals – to be adopted formally by the European Parliament and the Council by the end of 2008, will contribute to achieving the so-called "2020 targets" set by the European Heads of State in March 2007: 20% increase in energy efficiency, 20% reduction in greenhouse gas emissions, 20% share of renewables in overall EU energy consumption by 2020 and 10% biofuels component in vehicle fuel by 2020.
The package contains, among others, binding targets for Member States to increase their use of renewable energy. Major CO2 emitters will also have more incentives to develop clean production technologies through the reformed Emissions Trading System.
The role of State aid
State aid, if used in a clever and targeted way, can play a supporting role in reaching those targets. The Commission has adopted in January 2008 revised Community guidelines on State aid for environmental protection to complement and support the efforts to combat climate change. In particular, the guidelines encourage Member States to support the production of renewable energy and energy efficient cogeneration by allowing them to grant operating aid to renewable energy producing companies, covering the full difference between production costs and market price. In addition, the guidelines allow for generous support for a whole range of measures increasing environmental protection, e.g., energy saving, district heating, going beyond Community standards, waste management and the like.
Finally, by striking the right balance between delivering increased environmental benefits and minimizing distortions of competition, the guidelines will reinforce the effectiveness of the other proposals of the Package, which rely on well-functioning and undistorted markets.
In this context, Commissioner Kroes hosted a round-table seminar on 27 May 2008 on environmental protection, climate change and the role of public support. Read a summary of the preceedings  of that event.
More information:
Frequently asked questions on the new guidelines on State aid for environmental protection (MEMO/08/31, 23.01.2008)
State aid scoreboard, spring 2008 update
|
