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Community Guidelines for State Aid for Environmental Protection

The Commission have just published their draft text of the " Community guidelines for State aid for environmental protection" available at http://ec.europa.eu/comm/competition/state_aid/reform/reform.html
The draft guidelines covers aid for the following purposes:

  • Aid for firms improving on Community standards or increasing the level of environmental protection in the absence of Community standards.
  • Aid for early adaptation to future community Standards
  • Aid for undertaking improving on Community standards or on environmental protection in the absence of Community standards in the transport sector
  • Aid for energy saving
  • Aid for renewable energy sources
  • Aid for the combined production of electric power and heat (CHP) and aid for district heating
  • Aid for Waste management
  • Aid for the remediation of contaminated sites
  • Aid for the relocation of undertakings
  • Aid in the form of tax reductions or exemptions
  • Aid in the form of tradable permit schemes

You should also look out for changes to aid intensity levels, eligible costs calculations, criteria for economic assessment of cases and thresholds for notifying certain types of aid. On the latter, the Commission have also asked that Member states pay particular attention to paragraph 140b of the draft guidelines concerning the thresholds for detailed assessment of important individual cases. The Commission would be very grateful if Member states could provide data concerning the implication of the proposed thresholds in terms of number of State aid notifications for each category of aid.

Furthermore as we have seen with all recently revised guidelines in other areas of State aid, there are new and additional reporting and monitoring requirements that you should be aware of, including the requirement to publish the full text of all final aid schemes on the internet and to communicate the internet address of the publication to the Commission.

We would like to see more radical changes to these guidelines and we would be very grateful if you could consider, in particular how you would like to see the guidelines changed to reflect current environmental needs. You may wish to distribute the draft Environmental Guidelines to other colleagues who may have an interest in its provisions and to make your stakeholder base aware of the paper and encourage them to respond with their views.

The deadline for comments is June 25 2007. To allow DTI time to prepare a coordinated UK response - I would appreciate it if you could please return your comments to us by Monday 18 June at the latest.

Return your comments to: jayant.mehta@nwda.co.uk or pernille.kousgaard@nwda.co.uk

Further information on State Aid in the Northwest can be found on the State Aid Extranet

Investing in England's Northwest (link opens in a new window)