To ensure the Competition Policy’s alignment with the European Green Deal, the state aid regime must be revised, taking the Union’s 2050 climate neutrality and new 2030 GreenHouse Gas (GHG) emission reduction targets, as well as zero pollution and circular economy strategies into account. The Green Deal alignment should be reflected on all state aid regulations and not only on those for environmental protection and energy.

Current state aid regime contradicts with the European Green Deal objectives primarily through its link with the EU ETS free allocation and indirect cost compensation mechanisms; by neglecting to factor in external costs such as climate, pollution, environment and health; by providing subsidies to unprofitable fossil fuel companies to continue operating until their business-as-usual closure dates. Although there are other aspects of the Competition Policy that can align better with the European Green Deal, this feedback focuses on the three above-mentioned aspects of the current state aid regime, with some supportive examples.

CAN Europe submission state aid EGD