STATE AID RULES ON ACCESS TO JUSTICE IN ENVIRONMENTAL MATTERS
The Commission is consulting until 21 March 2025 on draft amendments to the State Aid Implementing Regulation (EC) No 794/2004 and State Aid Best Practices Code as regards new rules on access to justice following the Aarhus Convention Compliance Committee's findings in case ACCC/C/2015/128. The intent is to set out a new mechanism which allows members of the public to request a Commission review of certain State Aid decisions to establish whether they contravene EU environmental law. Further information is available here.
ELECTRIC VEHICLE BATTERY FACTORY
The Commission approved a €48 million French measure to support the setting-up a new factory for the production of Lithium-ion batteries for electric vehicles in Douai. The measure was found to be permissible under State Aid rules on the basis that it would contribute to economic development and employment in the relevant region, and that it had an incentive effect, as the beneficiary would not carry out the project without public support. The Commission further stated that the investment was necessary, appropriate and proportionate, as it had a limited impact on EU competition and trade, contributed to regional development and was limited to the minimum amount necessary to trigger investment. Further information can be found here.
NUCLEAR POWER
The Commission concluded that two support measures totalling €23 million awarded by Poland to chemical company PCC MCAA Sp. z o. o for investment into a new plant are in line with EU State Aid rules. The investment was found to be permissible on the basis that it had an incentive effect, as the beneficiary would not carry out the project without public support. In addition, the Commission found that the overall aid amount did not exceed the regional aid ceiling applicable to the relevant region, and that the positive effects of the measures outweighed any potential distortion of competition and trade in the EU. Further information can be found here.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
