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ARTICLE · 22 APRIL 2025

State Aid - Horizon Scanner Infrastructure, Construction, Energy, April 2025

Arthur Cox
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The European Commission approved a €5 billion German scheme to help companies subject to the EU Emission Trading Scheme to decarbonise their production processes.

European UnionEnergy and Natural Resources
Arthur Cox
Arthur Cox
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PRODUCTION PROCESS DECARBONISATION

The European Commission approved a €5 billion German scheme to help companies subject to the EU Emission Trading Scheme to decarbonise their production processes. The scheme was found to be necessary and appropriate to support decarbonisation. The scheme was also held to have an incentive effect as the beneficiaries would not carry out investments in decarbonisation to the same extent without the public support.

ARBITRATION AWARD INCOMPATIBLE WITH STATE AID RULES

The European Commission concluded that an arbitration award, in which Spain is ordered to pay compensation for the modification of a renewable electricity support measure, constitutes illegal State aid within the meaning of Article 107(1) of the Treaty on the Functioning of the European Union. The decision requires Spain not to pay any compensation based on the arbitration award, and to ensure that no payment, execution, or implementation of the arbitration

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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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