State aid rules to be brought in line with Aarhus Convention

State aid rules to be brought in line with Aarhus Convention

The EU has launched a consultation on revision to state aid rules in order to bring them in line with the requirements of the Aarhus Convention.

The European Commission has prepared draft amendments to the state aid Implementing Regulation (EC) No 794/2004 and to the state aid Best Practices Code (BPC).

They follow a finding by the Aarhus Convention compliance committee in 2021 that the EU is in breach of the Aarhus Convention, because the public cannot challenge state aid decisions adopted under Article 108(2) TFEU on the basis of alleged breaches of EU environmental law.

The draft Implementing Regulation and the amended BPC set out a new mechanism which allows members of the public to request a Commission review of certain state aid decisions to establish whether they contravene EU environmental law.

In the amended BPC, the Commission sets out the arrangements for the internal review procedure, such as who can request the review, which decisions can be subject to the review, and the applicable deadlines.

The Commission is also taking the revision as an opportunity to update other procedural rules in accordance with the Commission’s established practice and EU case law.

Teresa Ribera, the Commission’s executive vice-president for clean, just and competitive transition, said: “The measures proposed are mindful of the EU’s international obligations under the Aarhus Convention, while taking into account the rules of Union law concerning State aid.

“The Commission remains strongly committed to ensuring that the EU respects its international obligations in matters pertaining to the Aarhus Convention.”

The consultation on the proposed changes will run until 21 March 2025.

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