Category: European Union Carbon Market Glossary

Published: 06 January 2016

Last Updated: 18 February 2023

 

EEAG is the acronym used for the European Commission's Guidelines on State aid for environmental protection and energy 2014-2020 (2014/C 200/01).

17 February 2023 Commission approves €460 million Spanish measure to support ArcelorMittal decarbonise its steel production Commission approves €55 million German measure to support ArcelorMittal's green steel demonstration plant   15 February 2023 Commission approves €170 million Danish scheme to support renewable hydrogen production 31 January 2023 Commission approves €104 million Croatian scheme to support energy-intensive companies 12 January 2023 Commission approves €1.1 billion Danish scheme to support roll-out of carbon capture and storage technologies

EEAG enable Member States to fund projects for environmental protection (including climate protection and green energy) and energy generation adequacy in a cost-effective and non-distortive way. They entered into force in 2014 together with the relevant provisions of the General Block Exemption Regulation (GBER) and are applicable until 31 December 2021 following a 1-year prolongation.

See also:   European Commission website on CEEAG

The revision of the EEAG and the relevant provisions of the GBER occurs against the backdrop of the twin green and digital transformation of the economy, notably the European Green Deal that aims to transform the EU into the first carbon neutral economy by 2050 (with a proposed increase of the greenhouse gas emission reduction target for 2030 to at least 55% compared to 1990) and a circular and zero-pollution one, where natural capital is protected.

Also, there have been a number of relevant regulatory changes (in particular, the Clean Energy Package, the Clean Mobility Package, the Circular Economy Package, and the EU Taxonomy Regulation).

 
The Inception Impact Assessment of 12 November 2020 (ref. Ares(2020)6636736) envisions the revision of the EEAG in light of the above developments.

 

The new Guidelines on State aid for Climate, Environmental protection and Energy (CEEAG) have been endorsed by the European Commission on 21 December 2021 and enter into force in January 2022.

International Conference on EU Antitrust: Hot Topics and Next Steps, Prague, 24 January 2022 - "Building the green and digital future: the challenges for 2022" In a few days’ time, our new rules on state aid for climate, environmental protection and energy will come into force. Those rules will vastly expand the range of projects that governments can use aid for, to cover all the goals of the European Green Deal. They’ll make it possible for governments to finance the full amount of greener investment as compared to a less green alternative - they’ll also come with tighter conditions to preserve competition, and avoid companies getting more aid than they need.

In the relevant communication the European Commission accentuates the fact that the CEEAG, in particular, broaden the categories of investments and technologies that the EU Member States can support to cover all technologies that can deliver the European Green Deal. Carbon Contracts for Difference are also promoted.

"A new single section covers the reduction or avoidance of greenhouse gas emissions, facilitating the assessment of measures supporting the decarbonisation of different sectors of the economy, including through investments in renewable energy, energy efficiency in production processes and industrial decarbonisation, in line with the European Climate Law. The revised rules generally allow for aid amounts up to 100% of the funding gap, especially where aid is granted following a competitive bidding process, and introduce new aid instruments, such as Carbon Contracts for Difference to help Member States respond to the greening needs of industry," reads the European Commission press release of 21 December 2021.

 

 

 

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