Energy and environment Energy and Climate Change What is the - TopicsExpress

Energy and environment Energy and Climate Change What is the role of State aid? Support granted by Member States may distort competition because it unfairly strengthens the position of companies that benefit from it vis-à-vis their competitors. This is why EU law foresees a general prohibition of State aid. However, environmental protection is an objective of common interest which, in certain circumstances, may justify the granting of State aid. State aid can provide incentives to reach the EU targets for a low carbon and energy-efficient economy. The rules for environmental State aid allow a broad range of aid measures for environmental protection, whilst ensuring that any distortions of competition brought about by such measures do not go beyond what is necessary and acceptable.

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