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Must the Commission Prohibit State Aid That Harms the Environment? journal article

Phedon Nicolaides

European State Aid Law Quarterly, Volume 22 (2023), Issue 1, Page 17 - 28

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


State Aid (CEEAG) and Taxonomy: journal article

Two Novel Pieces of Legislation at the Heart of Europe's Green Transition

Birgitte Jourdan-Andersen, Astrid Skjønborg Brunt

European State Aid Law Quarterly, Volume 21 (2022), Issue 3, Page 266 - 277

This article presents and analyses Taxonomy and the new State Aid Guidelines on Climate, Environmental Protection, and Energy (CEEAG), two regulatory regimes applicable for financing and support schemes for energy and climate projects. The article also addresses the necessary infrastructure development for delivering Europe's 2030 and 2050 climate targets, Europe's Green Deal, where both private and public funding are required. The EU Taxonomy is a transparency tool and a classification system to propel sustainable private investments. CEEAG are key for establishing the required public funding and support schemes. CEEAG oblige the Commission and the EFTA Surveillance Authority (ESA) to pay particular attention to the Taxonomy. Not only will the private capital have to ‘tune in’ to the Taxonomy, but all public support will also have to be assessed in line with the Taxonomy screening criteria. In analysing the CEEAG and the Taxonomy, it is argued that the novel CEEAG guidelines and Taxonomy legislation need to be viewed together and combined with the sectorial climate and energy legislation. It is argued that for any energy or climate initiative, it is essential to have regulatory oversight and not to overlook these two important pieces of legislation while approaching the massive climate and energy sectorial legislation from the EU. Where measures meet the Taxonomy requirements, the State aid assessment can be simplified. In balancing the positive and negative effects of the aid, the Commission will pay particular attention to compliance with the ‘do no significant harm' principle. Keywords: CEEAG; taxonomy; infrastructure; Green Transition; Green Deal; Fit for-55

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