The Hinkley Point C ruling

The Court of Justice confirmed that State aid for nuclear power plants is permissible under Article 107(3)(c) TFEU provided it is compatible with the internal market. Crucially, the ruling establishes that EU environmental law—including the precautionary and sustainability principles—applies to the nuclear sector, and any aid to an activity violating these laws is necessarily incompatible with the internal market. ClientEarth argues that the Commission should use this precedent to systematically enforce Green Deal objectives and the 'do no significant harm' principle across all State aid, recommending updated notification forms and stricter compliance checks for climate neutrality targets.

• The Court of Justice ruled that State aid for the construction of a nuclear power plant is permissible under Article 107(3)(c) TFEU if it is compatible with the internal market, provided the measure aims to facilitate the development of certain economic activities or areas and does not adversely affect trading conditions contrary to the common interest.
• The ruling confirms that EU environmental law and TFEU State aid rules apply to the nuclear energy sector, as the Euratom Treaty lacks provisions on State aid and environmental protection. This includes the precautionary principle, the 'polluter pays' principle, the principle of sustainability, and the principle of protection of the environment.
• Any State aid granted to an economic activity that violates EU environmental law is automatically incompatible with the internal market. Consequently, the Commission is required to verify that a supported activity complies with environmental laws before authorizing aid under Article 107(3)(c) TFEU.
• While the ruling affirms the right of Member States to choose their own energy mix under Article 194(2) TFEU, this does not exempt nuclear power projects from breaching EU environmental law, which would render associated aid incompatible.
• ClientEarth argues that the Commission should systematically apply the Green Deal's 'do no significant harm' principle to all State aid assessments to prevent a contradiction where RRF-funded sustainable projects coexist with unsustainable projects funded by national means.

APA

ClientEarth (2021). The Hinkley Point C ruling. https://www.clientearth.org/media/fscj42jf/clientearth-legal-note-on-the-hinkley-point-c-ruling_provisional-version-26-03-2021.pdf

Chicago

ClientEarth. The Hinkley Point C ruling. 2021. https://www.clientearth.org/media/fscj42jf/clientearth-legal-note-on-the-hinkley-point-c-ruling_provisional-version-26-03-2021.pdf.

Wikipedia

{{cite report |author=ClientEarth |title=The Hinkley Point C ruling |date=March 2021 |url=https://www.clientearth.org/media/fscj42jf/clientearth-legal-note-on-the-hinkley-point-c-ruling_provisional-version-26-03-2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{clientearth2021hinkley, author = {{ClientEarth}}, title = {{The Hinkley Point C ruling}}, institution = {ClientEarth}, year = {2021}, month = mar, url = {https://www.clientearth.org/media/fscj42jf/clientearth-legal-note-on-the-hinkley-point-c-ruling_provisional-version-26-03-2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }