On 2 April 2008, the new Community Guidelines on State Aid for environmental protection entered into force. These guidelines replace the ones of 2001, and will be applicable until 31 December 2014.

The objective of State aid control in the field of environmental protection is to ensure that State aid measures will result in a higher level of environmental protection than would occur without the aid.

It is also to ensure that the positive effects of the aid outweigh its negative effects in terms of distortions of competition, taking account of the polluter pays principle.

State aid in this field is seen as a second-best option, only after the polluter pays principle.

The European Commission has identifies a series of measures for which State aid may, under specific conditions, be compatible with EU State aid law.

One that appears most of interest is the potential aid for remediation of contaminated sites.

Investment aid to undertakings repairing environmental damage by remediating contaminated sites will be considered compatible with State aid law provided that it leads to an improvement of environmental protection.

The environmental damage concerned covers damage to the quality of the soil or of surface water or groundwater.

Where the polluter is clearly identified no state aid will be granted, as this person will be obliged to remediate according to the polluter pays principle.

When such a person cannot be identified, the aid for remediation of the contaminated site may amount to up to 100% of the eligible cost.

In this case, eligible costs are equal to the cost of the remediation work less the increase in the value of the land.

Other types include aid for: 

• Waste management;
• Reductions of or exemptions from environmental taxes.
• Environmental studies;
• Energy saving;
• Renewable energy sources;

The full list including requirements can be found in the Community Guidelines, available for download at the right-hand side of the screen. 

For more information please contact Sander Scheurwater of the RICS EU Public Affairs Office at sscheurwater@rics.org