G/SCM/Q2/EU/50  
 
20 October 2016  
(16-5713) Page: 1/4 
Committee on Subsidies  
and Countervailing Measures  
 Original: English  
 
SUBSIDIES  
REPLIES TO QUESTIONS1 FROM THE RUSSIAN FED ERATION REGARDING  
THE NEW AND FULL NOTIFICATIO N OF EUROPEAN UNION2 
The following communication, dated 22 April 2016 , is being circulated at the request of the 
Delegation of the European Union . 
 
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Question 1  
 
Austria  
 
Please explain why the following measures were not mentioned in 
G/SCM/N/253/EU/Add.1 or provide the information required under Article 25 of the 
SCM Agreement for each of these measures.  
 
-  Provision of annual support funds to green power p lants (Green Electricity Act 
of 2012).  
-  Stipulation of feed -in tariff (Ökostrom -Einspeisetarifverordnung 2012).  
 
Question 2  
 
Belgium  
 
Please explain why the following measures were not mentioned in 
G/SCM/N/253/EU/Add.2 or provide the informa tion required under Article 25 of the 
SCM Agreement for each of these measures.  
 
Obligation of national electricity distribution system to purchase green certificates from 
electricity producers at fixed price (The Royal Decree of 16 July 2002).  
 
Grants for  installation of micro thermal power stations and heat pumps (The Order of 
the Flemish Government of 19 January 2010).  
 
Reply  
 
The Belgian support regime for offshore wind power was introduced by article 7 of electricity law 
and by Royal Decree of 16 July 2002 and can be described as follows. Offshore green power 
certificates (hereafter "offshore GPC") are awarded to installations that generate electricity in the 
waters over which Belgium has jurisdiction. These offshore GPC can be sold to the transmission 
system operators (TSO) at a fixed minimum price and for certain installations recently also at a 
variable minimum price the amount of which is also determined by the electricity price and the 
cost evolution. The TSO collect an offshore surcharge by invoici ng it to the holders of an access 
                                                
1 G/SCM/Q2/EU/44.  
2 G/SCM/N/253/EU/Add.1 ; G/SCM/N/253/EU/Add. 2; G/SCM/N/253/EU/Add. 17; 
G/SCM/N/253/EU/Add. 14; G/SCM/N/253/EU/Add. 24; G/SCM/N/253/EU/Add. 19; G/SCM/N/253/EU/Add. 8. G/SCM/Q2/EU/50  
 
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  contract or the distribution system operators. The latter pass on the offshore surcharge to the final 
consumers on each kWh they take off the grid for their own consumption.  
 
Moreover a progressive reduction ("degressivity ") of the offshore surcharge is introduced to 
mitigate the impact of the offshore surcharge on the competitiveness of large consumers. The 
offshore surcharge is furthermore capped at €250,000 per consumption location in 2014.  
 
Finally there is also the leg al obligation for the TSO to finance one -third of the cost of the 
submarine cable, with a maximum of €25 million.  
 
The Belgian support regime for offshore wind power is based on objective criteria or conditions. 
The level of (offshore) energy generated and  the level of energy used constitute neutral criteria 
that are economic in nature. For that reason, the Belgian support regime for offshore wind power 
does in our opinion not qualify as a subsidy that is specific in the sense of articles 1 and 2 of the 
SCM agreement. As a result, the Belgian federal government opines that the Belgian support 
regime introduced by article 7 of electricity law and by Royal Decree of 16 July 2002 is not subject 
to the obligation of notification as provided for in article 25 of the SCM agreement.  
 
- Grants for installation of micro thermal power stations and heat pumps (The Order of the Flemish 
Government of 19 January 2010).  
 
Given that the subsidies for installation of micro -thermal power stations and heat pumps are only 
grante d to non -commercial institutions and to public bodies (cfr. article 7.2.1 of the Order of the 
Flemish Government of 19 November 2010), and therefore no subsidies are granted to (certain) 
enterprises in the meaning of Article 2 SCM Agreement, the measure is  not subject to notification 
under Article 25 of the SCM Agreement.  
 
Question 3  
 
Luxembourg  
 
Please explain why the following measure was not mentioned in 
G/SCM/N/253/EU/Add.17 or provide the information required under Article 25 of the 
SCM Agreement.  
 
Financial support for installation of solar photoelectric facility (Th e Order of the 
Grand  Duke of 12  December 2012).  
 
Reply  
 
The financial support for installation of photoelectric facilities is not part of the Luxembourg 
notification as it is not a subsidy relating to the production of goods and not a specific subsidy as 
defined in Articles 1 and 2 of the Agreement on Subsidies and Countervailing Measures (there are 
objective criteria and conditions governing the eligibility and the amount of the subsidy and  the 
eligibility is automatic).  
 
Question 4  
 
Italy  
 
Interregional operational program "Renewable energies and energy saving 2007 -2013".  
It is our understanding that the program aims at increasing energy production from 
renewable sources and improving energ y efficiency in certain regions of Italy. It 
appears that some measures under the program could be defined as a "subsidy" in the 
meaning of Article 1 of the SCM Agreement. Please provide full information regarding 
the program as required under Article 25 o f the SCM Agreement or otherwise explain 
why these programs are not subject to the notif ication requirements of the 
SCM Agreements.  
 G/SCM/Q2/EU/50  
 
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  Reply  
 
The Program that it concerns is aimed at achieving two main objectives: developing renewable 
energy and increasing e nergy efficiency. The Program envisages two ma in categories of 
beneficiaries:  
- Public administration;  
- Firms.  
 
As far as firms are concerned,  the program provides financial support  for investments regarding 
energy distribution networks,  energy efficiency  in the productive process and  renewable energy 
produced by biomasses, undertaken in the areas eligible to the support, e.g. 4  Regions in the 
South of Italy.  
 
In these cases financial support, in form of grant or repayable loans,  is given for investments i n 
compliance  with the European Union state aid legislation, namely the "de minimis " 
regulation  n. 1407/2013 " and the block exemption regulation reg. 651/2014.  
 
No subsidies to  export or trade are concerned.  
 
At December 2014, the spending to beneficiaries (Public Administr ation and firms) was 
around  805 Ml Euros, (75% of Program overall donation of 1,071 Ml Euros).  
 
These payments were finalized to renewable energies and e nergy efficiency projects 
(e.g. renewable energy machineries and energy efficiency for  public buildings and firms and for 
production cycle etc.)  
 
Question 6  
 
The Netherlands  
 
Please explain why the following measures were not mentioned in notifications of 
G/SCM/N/253/EU/Add.19 or provide the information requi red under Article 25 of the 
SCM Agreement for each of these measures.  
 
- Energy investment allowance. It is our understanding that the measure aims at 
promoting tax relief for the companies providing energy efficient investments 
(authorized by the Dutch Ministry of economic affairs).  
 
- Stimulering Duurzame Energieproductie (SDE+). It is our understanding that the 
measure aims at providing grants issued to a producer of renewable energy as a 
compensation for generation costs (authorized by the Dutch Ministry of economic 
affairs).  
 
Reply  
 
The Netherlands believes that the tax measure "Energy investment allowance " is not subject to the 
notification requirement of the SCM Agreement as laid down in article 25.2 of the SCM Agreement. 
This tax measure is based on objective criteria governing th e eligibility for, and the amount of 
subsidy (e.g. tax relief). The criteria and conditions for the eligibility for subsidy are laid down in 
law, regulations and other official documents which are publicly available, and access to the 
subsidy is not limite d to certain enterprises. Therefore, specifici ty does not exist 
(ref. article  2.1. (b) of the SCM Agreement).  
 
Furthermore, much information about this measure is already publicly available and can be found 
on i.a.: http://english.rvo.nl/subsidies -programmes/energy -investment -allowance -eia and 
http://www.answersforbusiness.nl/subsidy/e nergy -investment -allowance .  
 
The subsidy scheme Stimulering Duurzame Energie (Subsidy scheme Promoting Renewable 
Energy+) has been notified by the Netherlands by the most recent notification in 2015 regarding 
the years 2013 and 2014. Unfortunately, the s ubsidy scheme Stimuleringsregeling Duurzame G/SCM/Q2/EU/50  
 
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  Energie has not been notified in 2013. Therefore, the Netherlands hereby provide the required 
information about this subsidy scheme.  
 
1. Form of the subsidy  
 
Exploitation grant.  
 
2. Cost of subsidy  
 
Expenditure 2011: €  54 million  
Expenditure 2012: € 74 million  
 
3. Policy goals  
 
The main objective of this subsidy scheme is to progress as cost effectively as possible towards the 
mandatory European renewable energy target for 2020, which  for the Netherlands amounts  
to 14%. It gives priority to the least expensive projects, aiming at cost effectiveness.  
 
4. Duration  
 
Budget for this measure is decided upon yearly. On the basis of an individual grant the production 
of renewable energy will be subsidized up to a maximu m of 15 years.  
 
5. Consequences for international trade  
 
No effects on international trade.  
 
6. Legal basis  
 
General Administrative Order for the Promotion of Sustainable Energy (Besluit stimulering 
duurzame energieproductie), published in Staatsblad 2011 , nr. 548 and Staatsblad 2012, nr. 91.  
 
Question 7  
 
Finland  
 
It is our understanding that subsidies under the Regu lation 1063/2012 of 
27 December  2012 are provided in order to promote efficient use of energy and 
development of renewable energy.  
 
Please ex plain why this measure was not notified in G/SCM/N/253/EU/Add.8 or provide 
the information required under A rticle 25 of the SCM Agreement.  
 
Reply  
 
The above mentioned regulation refers to the Finnish Energy Grants that has been notified 
accord ing to the reporting rules under article 25 WTO Agreement on Subsidies and Countervailing 
Measures (see pg. 20 of the Finnish report for 2011 -2012).  
 
The previous regulation (1313/2007) covered the period 2008 -2012 and was replaced by the new 
regulation (1 063/2012). As the new regulation came to force only in the beginning of the 2013 it is 
covered by Finland 's subsidy report for 2013 -2014.  
 
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