Sustainable State aid

Abstract

This chapter argues that the mandatory nature of the environmental integration principle has important procedural and substantive implications for the area of State aid law and policy. The requirement to integrate environmental protection requirements into all stages of state aid law and policies warrants a reconsideration of the strict effects-based approach in the analysis of environmental aid. Moreover, Article 11 TFEU obliges the European Commission to design its exemption policies in a way that promotes sustainable development and guarantees a high level of environmental protection. The current approach in the Guidelines on Environmental and Energy State Aid (EEAG) does not seem to provide adequate mechanisms for integrating environmental concerns into state aid policy when the objective of a high level of protection and improvement of the quality of the environment is taken as a benchmark. The chapter concludes by way of illustrating the significant implications of Article 11 TFEU for the nature of environmental aid granted as well as the division of supervisory powers between the Commission and the Member States.