Country:European Union
Policy status:In Force
Date Effective:2000
Policy Type:Economic Instruments>Fiscal/financial incentives, Regulatory Instruments
Policy Target:
Agency:European Commission, DG Competition
Legal References:Community guidelines on State aid for environmental protection - Official Journal, 3 Feb 2001 (2001/C 37/03)
Description:The European Commission adopted on 21 December 2000 its new guidelines on state aids for environmental purposes. Valid until 31 December 2007, they are designed to inform member States under what conditions the Commission, as the guardian of fair competition in the internal market, can be expected to approve assistance with an environmental purpose to companies. For example, in view of the huge task Kyoto presents in terms of greenhouse gas reduction targets, aid to investment in energy saving, renewables and the combined production of heat and power is allowed up to 40%. Small and medium-sized enterprises (SMEs) may enjoy 10% extra, and a bonus can also be accorded to investment in disadvantaged regions assisted by the member States. Furthermore, for both renewables and combined heat and power, operating aid enabling a fair return on capital is permitted. Various channels may be used to that effect, including subsidies making up the difference between the market price and the production cost of renewable energy, market mechanisms like "green certificate" schemes, or support based on the calculation of the environmental damage avoided thanks to renewable energy or combined heat and power.

Last modified: Fri, 06 Jul 2012 17:06:30 CEST