State aid control in the EU

The document explains the EU's State aid control system, which generally prohibits government financial support to companies to protect the internal market unless the European Commission approves it. It details the 'State aid rulebook', including block exemptions and guidelines, and highlights the lack of systematic climate and environmental mainstreaming in these rules. The guide also outlines the procedural challenges for CSOs, who are typically treated as 'third parties' without formal standing to lodge complaints or challenge decisions in EU courts, and provides strategies for CSOs to influence State aid design and transparency.

• State aid is generally prohibited in the EU to prevent distortions of competition and protect the internal market, but it can be allowed if the European Commission deems it compatible with the internal market.
• The European Commission holds exclusive competence in State aid control, acting as the administrative decision-maker, law enforcer, and policy maker.
• State aid expenditure in the EU27 doubled between 2011 and 2019, excluding recent spikes from the COVID-19 pandemic and the war in Ukraine; in 2021, total expenditure reached EUR 334.54 billion, or 2.3% of EU GDP.
• The EU State aid rulebook lacks general climate and environmental mainstreaming, meaning some frameworks do not consider environmental impacts, which can allow for the granting of environmentally harmful aid.
• The General Block Exemption Regulation (GBER) allows certain aid to be granted without prior notification to the Commission, provided it meets specific conditions and thresholds, such as a general maximum of EUR 30 million per company per investment project for environmental protection.
• Civil society organisations (CSOs) are generally treated as 'third parties' rather than 'interested parties' in State aid procedures, meaning they cannot formally lodge complaints or challenge Commission decisions in EU courts.
• The Aarhus Convention Compliance Committee (ACCC) found that the EU violates the Aarhus Convention by excluding environmental NGOs from challenging State aid decisions before EU courts; the Commission is expected to propose amendments by 2025.
• The Temporary Crisis and Transition Framework (TCTF), adopted in 2022 following the war in Ukraine, provides flexibility for Member States to support the economy and accelerate the energy transition, including aid for renewable energy and industrial decarbonisation until the end of 2025.
• Member States are required to publish information on aid measures above EUR 100,000, but transparency is inconsistent across the EU, with some national registers being non-existent or not publicly available.

APA

ClientEarth (2024). State aid control in the EU. https://www.clientearth.org/media/ojukkerk/clientearth-state-aid-control-in-the-eu-a-state-aid-guide-for-civil-society.pdf

Chicago

ClientEarth. State aid control in the EU. 2024. https://www.clientearth.org/media/ojukkerk/clientearth-state-aid-control-in-the-eu-a-state-aid-guide-for-civil-society.pdf.

Wikipedia

{{cite report |author=ClientEarth |title=State aid control in the EU |date=January 2024 |url=https://www.clientearth.org/media/ojukkerk/clientearth-state-aid-control-in-the-eu-a-state-aid-guide-for-civil-society.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{clientearth2024state, author = {{ClientEarth}}, title = {{State aid control in the EU}}, institution = {ClientEarth}, year = {2024}, month = jan, url = {https://www.clientearth.org/media/ojukkerk/clientearth-state-aid-control-in-the-eu-a-state-aid-guide-for-civil-society.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }