environmental protection Eeva Vahtera

Transcription

1 EU State Aid Guidelines for environmental protection Toolbox Seminar 18th November 2011 Toolbox Seminar 18th November 2011 Eeva Vahtera

2 Content 1) Background and aims of the Guidelines (2008/C82/01) 2) The field of application and dthe assessment of compatibility - standard assessment under EAG - detailed assessment under EAG 3) Cumulation of aid 4) Conclusions

3 Background and aims of the Guidelines -Council conlucions March >development of a sustainable integrated European climate and energy policy -Climate package January State aid Action plan (SAAP) - balancing test - three ways to assess the aid a) GBER (General Block Exemption Regulation 800/2008) b) standard assessment under EAG c) detailed assessment under EAG

4 Background and aims of the Guidelines - Widely accepted environmental aim does not exclude the necessity to determine whether the aid in question is compatible with the EU State aid rules only aid approved by the Commission can be granted a) Objective of common interest b) It addresses the market failure c) Positive effects outweights negative effects of distortion of competition

5 The field of application and the assessment of compatibility Broad Scope -> all sectors except; for example (not exhaustive list) a) Specific rules provide otherwise b) Design/manufacture of environmental products c) R&D& I in environmental technologies/products d) Environmental training etc e) Transport Infrastucture Environmental protection means that any action designed to remedy or to prevent damage to physical surroundings or natural resources by a beneficiary i `s own activities iti to reduce the risk of such damage or lead to more efficient use of natural resources, including energy saving measures and the use of renewable sources of energy

6 Compatible measures For example - Undertakings going beyond EU standards - Acquistion of transport vehicles - Early adaptation to future mandatory standards - Environmental studies - Energy savings - High efficiency cogeneration of heat and electricity - Energy-efficient district heating - Waste management - Remediation of contaminated sites - Relocation of undertakings for environmental reasons

7 Example; Investment Aid; Eligible costs Extra invesment costs necessary to achieve a higher level of environmental protection Two step calculation: A) Cost of fthe investment t directly related to environmental protection ti B) Deduction of operating benefits and adding of possible increased operating costs Reference investment (based on the counterfactual situation in the absence of State aid); a technically comparable investment that provides a lower degree of environmental protection ti thatt would credibly be realised without aid (the same production capacity and all other technical characteristics)

8 Example; Investment Aid; Aid intensities Aid intensities: Aid for undertakings which go beyond EU standards L: 50 %, M; 60 % and S:70 % Aid for energy savings; renewable energy sources and cogeneration L: 60 %; M= 70 %, S:80 % Bonus for eco-innovation and possibility of aid intesity up to 100 % of eligible costs in case the aid is granted in genuinely competitive bidding process

9 Detailed assessment -> investment aid amount is exceeding EUR 7,5 million threshold - The detailed assesment is conducted on the basis of the specific positive and negative elements, when they are relevant for the type of form of aid Main positive effect: the aid induces the undertakings to pursue environmental protection which they would not otherwise have pursued - existence of a market failure, appropriate instrument - incentive effect and necessity of aid - proportionality of fthe aid

10 Detailed assessment Negative effects - Dynamic incentives/crowding out - Maintaining inefficient firms afloat, market power/exclusionary behaviour - Effects on trade and location -> balancing positive and negative elements in order to determine whether the resulting distortions adversely affect trading conditions to an extent contrary to the common interest

11 Example from Finland Government Degree on the General Guidelines on Investment Aid to Vessels for the purpose Of Improving Environmental Protection ( the notification is still pending in the Commission) -> the aid scheme issues provisions on the granting investment aid to new vessels for the purpose of improving environmental protection -> in line with the EAG guidelines -> the Comission will be separately notified of cases in which the aid amount exceeds EUR 7,5 million

12 Cumulation of aid A rule of cumulation of aid -> ensure proportionality The various guidelines and frameworks contain the same basic principle of cumulation -> no aid from two or more sources may be received for the same undelying costs or expenditure -> case by case analysis For exampe in Finland the prevailing interpretation is that the aid to the shipyard and the shipping company do not cumulate with each other. The shipping company can thus receive environmental aid for buying a ship that has been built in a shipyard that has received for example innovation aid in line with Maritime State Aid Guidelines (2004/C13/03). This is not not clearly indicated either in the maritime state aid guidelines nor the environmental guidelines.

13 Conclusions -State aid must comply with existing guidelines and regulations and in principle must present an incentive effect - When new EU standars are considered or adopted -> MS may in particular grant two categories of investment t aid pursuant to and in accordance with EAG a) In case investments which take place before the adoption of new EU standards, MS may grant investment aid enabling companies to go beyond existing EU standards b) When new EU standards have been adopted, but are not yet in force MS may grant investment aid for early adaptation ahead of the entry into force of new standards ( Comission Staff Working paper 16/9/2011, 13016/11)

14 Aid for early adaptation to future Community standards(eag313) ) - Aid for complying with new Community standards which increase the level of environmental protection and are not yet in force will be considered compatible with the common market within the meaning of Article 87(3)(c) of the EC Treaty if the Community standards have been adopted, provided that the investment is implemented and finalised at least one year before the entry into force of the standard. - The maximum aid intensities are 25 % for small enterprises, 20 % for medium-sized i d enterprises and 15 % for large enterprises if the implementation and finalisation take place more than three years before the mandatory date of transposition or date of entry into force.

15 Aid for early adaptation to future Community standards(eag313) ) BUT The aid intensity is 20 % for small enterprises, 15 % for medium-sized enterprises and 10 % for large enterprises if the implementation and finalisation take place between one and three years before the mandatory date of transposition or date of entry into force. For example, if the standards will entry into force on , the last chance to get aid for investment ( in accordance with the lower aid-intensities ) would be if the instalment was ready by > looking for more flexible use of EAG?

16 TOOLBOX SEMINAR Thank You for Your Attention Eeva Vahtera