Guidelines on State aid for environmental protection and energy – prolonged to 2021

In April 2014, the EC introduced new guidelines on state aid for environmental protection and energy, including renewable energy and biofuels.

In relation to biofuels, the guidelines state:

(112) In view of the overcapacity in the food-based biofuel market, the Commission will consider that investment aid in new and existing capacity for food-based biofuel is not justified. However, investment aid to convert food-based biofuel plants into advanced biofuel plants is allowed to cover the costs of such conversion. Other than in this particular case, investment aid to biofuels can only be granted in favour of advanced biofuels.

(113) Whilst investment aid to support food-based biofuel will cease with the entry into force of these Guidelines, operating aid to food-based biofuels can only be granted until 2020. Therefore such aid can only be granted to plants that started operation before 31 December 2013 until the plant is fully depreciated but in any event no later than 2020.

(114) In addition, the Commission will consider that the aid does not increase the level of environmental protection and can therefore not be found compatible with the internal market if the aid is granted for biofuels which are subject to a supply or blending obligation, unless a Member State can demonstrate that the aid is limited to sustainable biofuels that are too expensive to come on the market with a supply or blending obligation only.

'sustainable biofuel' means a biofuel fulfilling the sustainability criteria set out in Article 17 of Directive (EC) 2009/28 of the European Parliament and the Council on the promotion of the use of energy from renewable sources and any amendment thereof.

The Official Journal of the European Union states: “Having regard to the need for continuity and legal certainty in the treatment of State aid in the field of short-term export-credit insurance, it is considered appropriate to apply the current Communication until 31 December 2021. This will align its expiration date with those of the majority of State aid guidelines adopted pursuant to the State aid modernisation programme.”