EU Lays Out Rules to Allow More State Aid for Green Projects

Support for fossil fuels such as coal and oil is unlikely to be approved, while new investments in natural gas must be compatible with the EU’s climate targets, the Commission said.

Kate Abnett, Reuters

EU countries will be allowed to pump more money into green projects in climate, energy and the environment, while state support for fossil fuels will face more hurdles to be approved by Brussels, the European Commission said on Dec. 21.

The Commission, which vets national governments’ state aid to check that it does not distort competition in the EU single market, set out the upgraded competition rules aimed at helping countries meet climate change targets.

The EU aims to cut its net greenhouse-gas emissions 55% by 2030 from 1990 levels and eliminate them by 2050. That will require huge low-carbon investments, including extra energy sector investments of 350 billion euros (US$395 billion) a year this decade.

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