Restructuring aid to Complexul Energetic Oltenia

The document argues that the restructuring plan for Complexul Energetic Oltenia (CEO) fails to restore long-term viability because it maintains unviable lignite assets and invests in fossil gas, which are viewed as stranded assets. The authors contend that the plan contradicts the European Green Deal and the Paris Agreement, and that the proposed State aid—including €241.4 million for 2020 CO2 allowances—violates EU law and the 'do no harm' principle. They highlight a lack of real own contribution from CEO and the absence of meaningful compensatory measures, suggesting instead a full lignite phase-out by 2030.

• The restructuring plan for Complexul Energetic Oltenia (CEO) is deemed incompatible with the European Green Deal, the Paris Agreement, and EU decarbonisation targets for 2030 and 2050 because it maintains lignite and fossil fuel use beyond 2030.
• The authors argue that the plan fails to restore long-term viability as it relies on unviable lignite assets and fossil gas capacity, which are considered future stranded assets.
• Romania is accused of violating its standstill obligation under Article 108(3) TFEU by granting CEO approximately €241.4 million (1,180,446 thousand lei) on 30 March 2021 to purchase CO2 allowances for 2020.
• The proposed restructuring aid is criticized for lacking a real own contribution; the authors claim the actual contribution is limited to a projected asset sale of €49 million, as other cited revenues are future cash flows.
• The document asserts that the plan's financial projections are based on unrealistic CO2 allowance prices, estimating that CEO's emission costs between 2021 and 2030 will be at least €4.048 billion, potentially rising to €4.76 billion based on more realistic modelling.
• The authors claim the plan will lead to an increase in total annual emissions, rising from 7 Mt CO2/year in 2020 to approximately 9 Mt CO2/year in 2030, with a peak of 10.7 Mt CO2/year in 2024.
• The use of the Modernisation Fund for CEO's plan is argued to be in contradiction with Article 10d of the ETS Directive, which prohibits support for energy generation facilities using solid fossil fuels.

APA

ClientEarth (2021). Restructuring aid to Complexul Energetic Oltenia. https://www.clientearth.org/media/lm0nnejp/bankwatch-romania-and-clientearth-observations-on-restructuring-aid-to-complexul-energetic-oltenia.pdf

Chicago

ClientEarth. Restructuring aid to Complexul Energetic Oltenia. 2021. https://www.clientearth.org/media/lm0nnejp/bankwatch-romania-and-clientearth-observations-on-restructuring-aid-to-complexul-energetic-oltenia.pdf.

Wikipedia

{{cite press release |author=ClientEarth |title=Restructuring aid to Complexul Energetic Oltenia |date=19 April 2021 |url=https://www.clientearth.org/media/lm0nnejp/bankwatch-romania-and-clientearth-observations-on-restructuring-aid-to-complexul-energetic-oltenia.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{clientearth2021restructuring, author = {{ClientEarth}}, title = {{Restructuring aid to Complexul Energetic Oltenia}}, publisher = {ClientEarth}, year = {2021}, month = apr, url = {https://www.clientearth.org/media/lm0nnejp/bankwatch-romania-and-clientearth-observations-on-restructuring-aid-to-complexul-energetic-oltenia.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }