State Aid
General developments
State aid for climate resilience investment
The European Commission’s new EU Framework for Climate Resilience aims to strengthen Europe’s preparedness for and response to climate risks. As part of the Framework, the Commission indicates that, with the revised General Block Exemption Regulation expected to enter into force in early 2027, it intends to further facilitate the granting of State aid by public authorities to companies investing in climate resilience. The initiative could therefore expand the scope for public support for climate-resilient investment, including in infrastructure and the built environment.
Commission allocates €3.4 billion to net-zero technology projects
The European Commission selected 77 projects across 23 EEA countries for approximately €3.4 billion in support under the EU Innovation Fund (PDF 94 KB). The projects cover a broad range of net-zero technologies relevant to the infrastructure, construction and utilities sectors, including renewable energy, energy storage, hydrogen, industrial carbon management, construction materials and critical raw materials. The funding is intended to support the deployment of innovative decarbonisation technologies and strengthen Europe’s clean technology capabilities.
Arbitration awards
REFERRAL TO CJEU
The European Commission referred Belgium to the Court of Justice of the EU for recognising investor-State arbitration awards arising from changes to renewable energy support schemes, despite those awards potentially constituting State aid requiring prior Commission approval. The Commission considers that making the awards enforceable in Belgium breaches EU law, including the principle of the autonomy of EU law and the Article 108(3) TFEU standstill obligation, and risks circumventing EU State aid controls.
State aid decisions
Polish Support for Man Trucks Factory Expansion
The European Commission concluded that Poland’s plan to support the extension of capacity at a factory operated by truck producer MAN Trucks sp. z o. o. in Niepolomice in the Malopolskie region is not in line with EU State aid rules. Therefore, Poland cannot disburse the aid.
Fuel Cost Relief Schemes (Middle East Crisis)
Under the Middle East Crisis Temporary State Aid Framework (PDF 741 KB), the European Commission approved targeted national aid measures to support sectors most affected by fuel price increases.
In Bulgaria, the European Commission approved a €170 million State aid scheme for farmers facing increased fuel and fertiliser prices due to the Middle East crisis. In Romania, the European Commission approved a €52 million (RON 277 million) State aid scheme for cattle farmers facing increased fuel and fertiliser prices due to the Middle East crisis.
