ARTICLE
23 June 2025

Horizon Scanner ICE: June 2025 - State Aid

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The European Commission amended State Aid rules to allow NGOs to request a review of State Aid decisions that relate to EU environmental law. This new review mechanism comes in light of the findings of the Aarhus Convention Compliance Committee in case ACCC/C/2015/128...
European Union Environment

AMENDMENT TO STATE AID RULES

The European Commission amended State Aid rules to allow NGOs to request a review of State Aid decisions that relate to EU environmental law. This new review mechanism comes in light of the findings of the Aarhus Convention Compliance Committee in case ACCC/C/2015/128. The Committee found that the EU was in breach of the Aarhus Convention as the public could not challenge State aid decisions where these decisions allegedly breached EU environmental law. The revised rules also update provisions in line with established practises and case law. Eligible NGOs may submit requests for review of relevant decisions within two months of the publication of the amendments to the Implementing Regulation in the Official Journal.

CONSIDERATION OF REVISION OF STATE AID RULES

The European Commission is seeking feedback until 31 July 2025 on a revision of the services of general economic interest (SGEI) State aid rules to address the issue of housing affordability. The current SGEI State aid rules allow Member States to implement social housing measures. However, the Commission's political guidelines recognise that the rules are not adapted to allow Member States to effectively tackle the various challenges related to housing affordability that go beyond social housing. The revision aims to simplify, clarify and update the rules to address the need to incentivise investment in affordable housing.

DUTCH STATE AID TO SUPPORT INDUSTRIAL DECARBONISATION

The European Commission approved a €1.2 billion Dutch scheme, known as NIKI, to support companies to reduce lifecycle greenhouse gas emissions. The aid will be allocated to projects that provide the largest environmental benefit for the lowest cost. For the first time, the scheme introduces competition between direct decarbonisation, and resource efficiency and circulatory projects in a State Aid measure. Supported projects must be in the manufacturing, waste management or remediation activity sectors, and will be selected following an open, competitive bidding process. The Commission found that the scheme was necessary and appropriate, had an incentive effect, and incorporated sufficient safeguarding on competition impacts. The scheme aims to contribute to the Netherland's decarbonisation objectives.

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.

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