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Green Deal and Incentive Effect:

What Is Truly Environmental Aid?

Vittoria Musardo


Keywords: Green Deal, EEAG, Incentive Effect, renewable energy, environmental aid

The current revision of the Energy and Environmental State aid guidelines (EEAG) represents a unique opportunity to update and adapt the current regime to reflect the latest EU regulatory and policy developments on climate change and environmental protection and especially the new goals of the European Green Deal. In this context, it becomes paramount to develop a clear and consistent approach for singling out aid measures which are truly capable of bringing about a further level of environmental protection, necessary for attaining such bold and farsighted objectives. The present article will seek to develop a consistent evaluation model for identifying aids which are truly environmental in nature, ensuring that the advantages allocated are targeted and limited to what is strictly necessary. This standard will build on the potential for a strategic use of the Incentive Effect criteria in the assessment of the compatibility of aid measures, aimed at making sure that the behavioural shifts induced by the latter are capable of attaining a level of environmental benefit consistent with the heightened environmental objectives introduced by the Green Deal.
Keywords: Green Deal; EEAG; Incentive Effect; renewable energy; environmental aid.

Vittoria Musardo, LLM in European Law – Dickson Poon School of Law, King’s College London; Environmental and Energy Law Associate - Gianni & Origoni, Milan. For correspondence: <>.


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