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Must the Commission Prohibit State Aid That Harms the Environment?

Phedon Nicolaides


Keywords: environmental protection, green transition, Article 107(3)(c), inextricable contravention of EU law

This article investigates the compatibility with the internal market of State aid that may directly or indirectly harm the environment and climate. It examines the case law on State aid and compliance with Article 107(3) TFEU and concludes that the Court of Justice has not laid down any general obligation for the European Commission to prohibit any State aid measure that may have a harmful effect. The European Commission is only required to prohibit aid whose objective is inextricably linked to a contravention of EU environmental law.
Keywords: environmental protection; green transition; Article 107(3)(c); inextricable contravention of EU law

Phedon Nicolaides, Professor at the University of Maastricht and the University of Nicosia.I am grateful to an anonymous reviewer, Juliette Delarue, Catherine Derenne and Peter Staviczky for helpful comments on an earlier draft. I am solely responsible for the views expressed in this article.


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