Information from the Commission - Community guidelines on State aid for environmental protection
Date: 2001-02-03
Institutions: European Commission
Subjects: EU programme, State aid, action programme, aid to undertakings, environmental protection

3.2.2001

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Community guidelines on State aid for environmental protection

(2001/C 37/03)

A. INTRODUCTION

1.

In 1994 the Commission adopted the Community
guidelines on State aid for environmental protection (1),
which expired on 31 December 1999.
In accordance
it conducted a review
with point 4.3 of the guidelines,
in 1996 and concluded that there was no need to make
any amendments in the meantime. On 22 December 1999
it decided to extend the validity of the guidelines until 30
June 2000 (2). On 28 June 2000 the Commission decided
to extend the validity of the guidelines to 31 December
2000 (3).

2. Since the guidelines were adopted in 1994, action in the
field of the environment has evolved at the initiative of the
Member States and the Community and at world level, in
particular following the adoption of the Kyoto Protocol.
Member States are granting State aid more frequently in
the energy sector, for example, and the aid they provide is
frequently in forms which have been rather uncommon
until recently, such as tax reductions and exemptions.
New forms of operating aid are also on the increase.
The Commission ought therefore to adopt new guidelines,
which will be needed in order to familiarise Member States
and firms with the criteria that it will apply in deciding
whether or not aid measures planned by the Member
States are compatible with the common market.

3. Under Article 6 of the EC Treaty, environmental policy
objectives must be integrated into the Commission’s
policy on aid controls in the environmental sector,
in
particular with a view to promoting sustainable devel-
opment. Accordingly, competition policy and environ-
mental policy are not mutually antagonistic, but
the
requirements of environmental protection need to be inte-
implementation of
definition and
grated
to promote
so as
in particular
competition policy,
sustainable development (4).

into the

4. However,

taking long-term environmental requirements
into account does not mean that all aid must be auth-
orised. Consideration has to be given to the effects the
aid may have in terms of sustainable development and
full application of
the (cid:145)polluter pays(cid:146) principle. Some
forms of aid certainly do satisfy these tests, particularly
where they make it possible to achieve a high level of
environmental protection while avoiding any conflict
with the principle of
the internalisation of costs. But
other forms of aid, as well as having adverse effects on

(1) OJ C 72, 10.3.1994, p. 3.
(2) OJ C 14, 19.1.2000, p. 8.
(3) OJ C 184, 1.7.2000, p. 25.
(4) The Commission also set out

its commitment

to integrating
environmental policy into other policy areas in its working paper
of 26 May 1999 entitled (cid:145)Integrating environmental aspects into all
relevant policy areas(cid:146) and in its report to the Helsinki European
Council on integrating environmental concerns and sustainable
development into Community policies (SEC(1999) 1941 final).

trade between Member States and on competition, may
run counter
to the (cid:145)polluter pays(cid:146) principle and may
hinder the establishment of a process of sustainable devel-
opment. This might be the case, for example, where aid is
designed merely
compliance with new
mandatory Community standards.

to facilitate

in determining whether,

5. The Commission’s approach in these guidelines therefore
consists
and under what
conditions, State aid may be regarded as necessary to
ensure environmental protection and sustainable devel-
opment without having disproportionate
effects on
competition and economic growth. This analysis must be
carried out in the light of the lessons that can be drawn
from the functioning of the 1994 guidelines and in the
light of the changes in environmental policy that have
occurred since then.

B. DEFINITIONS AND SCOPE

6. The concept of environmental protection: for the purposes
of these guidelines, the Commission takes (cid:145)environmental
to mean any action designed to remedy or
protection(cid:146)
prevent damage to our physical surroundings or natural
resources, or
these
resources.

to encourage the efficient use of

should

The Commission regards energy-saving measures and the
use of renewable sources of energy as action to protect the
environment.
be
Energy-saving measures
understood as meaning among other things action which
enables companies to reduce the amount of energy used in
their production cycle. The design and manufacture of
machines or means of transport which can be operated
with fewer natural resources are not covered by these
guidelines. Action taken within plants or other production
units with a view to improving safety or hygiene is
important and may be eligible for certain types of aid,
but it is not covered by these guidelines.

the

the internalisation of costs:
(cid:145)internalisation of

in these
The concept of
guidelines
the
principle that all costs associated with the protection of
the environment should be included in firms’ production
costs.

costs(cid:146) means

The (cid:145)polluter pays(cid:146) principle: this is the principle that the
costs of measures to deal with pollution should be borne
by the polluter who causes the pollution.

Polluter: a polluter is someone who directly or indirectly
damages
the environment or who creates conditions
leading to such damage (5).

(5) Council Recommendation of 3 March 1975 regarding cost allo-
cation and action by public authorities on environmental matters
(OJ L 194, 25.7.1975, p. 1).

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Prices to reflect costs: this principle states that the prices
of goods or services should incorporate the external costs
associated with the negative impact on the environment of
their production and marketing.

Community standard: mandatory Community standard
setting the levels to be attained in environmental terms
and the obligation under Community law to use the best
available techniques (BAT) (6) which do not entail excessive
costs.

solar

Renewable energy sources: renewable non-fossil energy
energy, geothermal
sources, viz. wind energy,
energy, wave energy,
tidal energy, hydroelectric instal-
lations with a capacity below 10 MW and biomass,
where biomass is defined as products from agriculture
and forestry, vegetable waste from agriculture,
forestry
and the food production industry, and untreated wood
waste and cork waste (7).

Electric power generated from renewable energy sources:
electric power generated by plant using only renewable
energy
electric power
generated from renewable energy sources in hybrid plant
using
for
traditional
contingency purposes (8).

in particular

and that

share of

sources,

sources,

energy

(cid:145)One likely feature for a levy to be
Environmental tax:
the taxable
considered as environmental would be that
base of
the levy has a clear negative effect on the
environment. However, a levy could also be regarded as
environmental
it has a less clear, but nevertheless
discernible positive environmental effect. [. . .] In general,
it
is up to the Member State to show the estimated
environmental effect of the levy [. . .].(cid:146) (9).

if

(6) The concept of best available techniques was introduced into
Community legislation by Council Directive 76/464/EEC of 4 May
1976 on pollution caused by certain dangerous
substances
discharged into the aquatic environment of the Community (OJ L
129, 18.5.1976, p. 23) and appeared again,
in slightly amended
form, in Council Directive 84/360/EEC of 28 June 1984 on the
combating of air pollution from industrial plants (OJ L 188,
16.7.1984, p. 20). Council Directive 96/61/EEC of 24 September
1996 concerning integrated pollution prevention and control (OJ
L 257, 10.10.1996, p. 26;
(cid:145)the IPPC Directive(cid:146)) developed and
confirmed this concept. The scope of the IPPC Directive covers
industrial
installations with a high pollution potential. The
Directive has applied since November 1999 to new installations
or
substantial
installations which have undergone
changes. Existing installations must comply with the rules of the
IPPC Directive by October 2007. Until that date the provisions of
the two abovementioned directives relating to the concept of BAT
continue to apply. As a rule, the concrete standards (cid:151) i.e. the
emission or consumption limit values based on the use of the
best available techniques (cid:151) are not set by the Community but
by the national authorities.

existing

(7) This definition is contained in the Commission proposal

for a
Parliament and Council Directive on the promotion of electricity
from renewable sources in the internal electricity market (OJ C
311 E, 31.10.2000, p. 320). Once the Directive has been adopted
by Parliament and the Council, the Commission will apply the
definition given in the final text.
(8) Same observation as for footnote 7.
(9) Environmental taxes and charges in the single market (COM(97)

9 final, 26.3.1997).

aid

(steel processing (11),

7. Scope: These guidelines apply to aid (10) to protect the
environment
in all sectors governed by the EC Treaty,
including those subject to specific Community rules on
shipbuilding, motor
State
transport, and fisheries), but
vehicles, synthetic fibres,
excluding the field covered by the Community guidelines
for State aid in the agriculture sector (12). These guidelines
apply to fisheries and aquaculture, without prejudice to the
application of the provisions set out in Council Regulation
(EC) No 2792/99 of 17 December 1999 laying down the
detailed rules and arrangements regarding Community
structural assistance in the fisheries sector (13) and in the
guidelines for examining State aid in the fisheries and
aquaculture sector (14). State aid for R & D in the environ-
in the
mental
Community framework for State aid for research and
development (15). Similarly,
the Commission considers
that the characteristics of aid for environmental training
activities do not justify such aid being treated separately,
and it will therefore examine it in accordance with the
provisions of Commission Regulation (EC) No 68/2001
of 12 January 2001 on the application of Articles 87
and 88 of the EC Treaty to training aid (16).

to the rules

set out

field is

subject

By virtue of Article 3 of Commission Decision No
1996 establishing
18 December
2496/96/ECSC of
industry (17),
Community rules for State aid to the steel
aid for environmental protection in the steel
industry
will continue to be analysed in accordance with the
Community guidelines on State aid for environmental
Journal C 72 of 10
protection published in Official
March 1994 until the expiry of the ECSC Treaty.

These guidelines do not apply to stranded costs, which will
be dealt with separately (18). The Commission would point
out that, by virtue of Commission Regulation (EC) No
69/2001 of 12 January 2001 on the application of
Articles 87 and 88 of the EC Treaty to de minimis (19)
aid, aid of not more than EUR 100 000 granted to a
firm for a period of three years is not caught by Article
87. That Regulation does not, however, apply to agri-
sectors
culture,
covered by the ECSC Treaty.

fisheries, and transport, nor

to the

(10) The purpose of these guidelines is not to discuss the concept of
State aid, which derives from Article 87(1) of the EC Treaty and
from the case law of the Court of Justice and the Court of First
Instance.

(11) Within the limits laid down in the second paragraph of point 7.
(12) OJ C 28, 1.2.2000, p. 2.
(13) OJ L 337, 30.12.1999, p. 10.
(14) The Commission would point out that these guidelines concern
only environmental aid, without prejudice to the applicability of
other provisions governing State aid, subject to the limitations of
the rules on combinations of aid in point 74 below.

(15) OJ C 45, 17.2.1996, p. 5.
(16) OJ L 10, 13.1.2001, p. 20.
(17) OJ L 338, 28.12.1996, p. 42.
(18) Stranded costs are costs which firms must bear because of
commitments they made and are no longer able to honour as a
result of the liberalisation of the sector in question.

(19) OJ L 10, 13.1.2001, p. 30.

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C. POLICY FOR CONTROLLING STATE AID AND ENVIRON-

MENTAL POLICY

internalisation of
remains a critical process(cid:146) (21).

environmental

costs onto polluters

8. During the 1970s and 1980s Community policy on the
environment took an essentially corrective approach. The
emphasis was on standards intended to reflect the main
concerns of environmental policy.

14. The Commission’s policy on the control of State aid for
environmental purposes therefore needs to satisfy a double
imperative:

in

adopted

sustainability(cid:146)

9. The fifth action programme on the environment, entitled
1993 (20),
(cid:145)Towards
and
represents something of a break with that approach. It
emphasises the need to conduct a long-term policy with
the aim of promoting sustainable development. The
objective is to reconcile on a lasting basis the development
of the European economy with the need to protect the
environment. Community action must no longer be
limited to reacting to environmental problems but, as
explicitly provided for in Article 6 of the EC Treaty as
amended by the Treaty of Amsterdam, environmental
protection requirements must be integrated into the defi-
nition and implementation of all Community policies and
activities, and must foster the active involvement of socio-
economic operators.

(a) to ensure the competitive functioning of markets, while
promoting the completion of the single market and
increased competitiveness in firms;

(b) to ensure that

to promote

the requirements of environmental
protection are integrated into the definition and
implementation of competition policy, in particular in
order
sustainable development. The
Commission here believes that internalisation of costs
is a priority objective that can be achieved in various
instruments based on
ways,
market
regulatory
approach,
these being the most effective tools for
achieving the objectives described above.

including by way of

based on a

laws or

those

10. Article 174 of the Treaty also provides for Community
policy to be based on the (cid:145)polluter pays(cid:146) principle. The
costs associated with protecting the environment should
be internalised by firms just like other production costs.
In order to implement this policy, the Community will
have to use a series of instruments: regulation, and in
particular the adoption of standards, but also voluntary
agreements or economic instruments.

11.

In 1996 the Commission drew up a progress report on the
fifth action programme on the environment. The report
states that the programme’s overall strategy and objectives
are still valid. There can be no doubt that progress has
been made in integrating environmental and sustainability
aspects into the other Community policies. However, what
has still not occurred is a genuine change in attitude on
the part of all the interested parties: policymakers, firms
and the general public.
to develop the
concept of shared responsibility for the environment and
to make the general public aware of the issues at stake.

It is important

12.

In 1999 the Commission adopted a global assessment of
the fifth action programme. The assessment noted that,
although the programme raised awareness of
the need
for stakeholders, citizens and decision-makers in other
sectors to pursue environmental objectives actively,
less
progress had been made overall
in changing economic
trends and modes of conduct which were harmful to the
environment.

13. The assessment also noted that (cid:145)it is increasingly clear that
damages to the environment have costs to society as a
whole and, conversely,
that environmental action can
in the form of economic growth,
generate benefits
employment and competitiveness(cid:146) and that (cid:145)the effective
application of the (cid:147)polluter pays(cid:148) principle and the full

(20) OJ C 138, 17.5.1993, p. 1.

15. Cost internalisation helps to ensure that prices accurately
reflect costs in so far as economic operators allocate their
financial resources on the basis of the prices of the goods
and services they wish to buy. The progress report on the
fifth programme emphasises that this aim has not been
realised because prices do not reflect ecological costs.
This in turn makes it more difficult
to raise public
awareness
and promotes overexploitation of natural
resources.

16. Ensuring that prices reflect costs at all stages of

the
economic process is the best way of making all parties
aware of the cost of protecting the environment. Apart
and
from its potentially
adverse
competition, State aid generally undermines
that aim
because it enables certain firms to reduce costs artificially
and not to reveal the costs of environmental protection to
In the long term, therefore, some forms of
consumers.
State aid run counter to the objectives of sustainable devel-
opment.

effects on trade

17. The Community guidelines on State aid adopted by the
Commission in 1994 form an integral part of
this
Community policy.
(cid:145)polluter pays(cid:146)
In general,
principle and the need for firms to internalise the costs
associated with protecting the environment would appear
to militate against the granting of State aid.

the

18. Nevertheless, the guidelines state that aid can be justified

in two instances:

(a) in certain specific circumstances in which it is not yet
possible for all costs to be internalised by firms and the
aid can therefore represent a temporary second-best
solution by encouraging firms to adapt to standards;

(21) Europe’s environment: what directions for the future? The global
assessment of the European Community programme of policy and
action in relation to the environment and sustainable development,
(cid:145)Towards sustainability(cid:146) (COM(1999) 543 final of 24.11.1999).

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(b) the aid may also act as an incentive to firms to
improve on standards or
further
investment designed to reduce pollution from their
plants.

to undertake

Specific case of the energy sector and tax reductions

22. Since the guidelines were adopted in 1994, the energy
sector has undergone major changes which need to be
taken into consideration.

19.

the
In the Community guidelines adopted in 1994,
in certain cases, total
Commission took the view that,
cost
internalisation was not yet possible and that aid
might be necessary on a temporary basis. The following
changes have nevertheless taken place since 1994:

(a) since the adoption of the fifth action programme on
the environment, which was already based on the
(cid:145)polluter pays(cid:146) principle and cost internalisation, firms
have had seven years in which to adapt to the gradual
application of the principle;

(b) the Commission’s 1996 progress report on the fifth
action programme and the 1999 evaluation report
internalisation
restate the need to provide for cost
to make
and to use market
significant progress in improving the environment;

instruments in order

(c) the use of market instruments and proper pricing is
also advocated by the Kyoto Protocol on climate
change.

20. The Commission’s position is therefore that aid should no
longer be used to make up for the absence of cost inter-
nalisation. If environmental requirements are to be taken
into account
in the long term, prices must accurately
reflect costs and environmental protection costs must be
fully internalised. Consequently, the Commission takes the
view that aid is not justified in the case of investments
designed merely to bring companies into line with new or
standards.
existing Community technical
In its view,
however,
the special difficulties
to address
in order
it should be possible to grant
encountered by SMEs,
them aid for adapting to new Community standards for
a period of
such
standards. Aid may though be useful where it serves as
an incentive to achieve levels of protection which are
than those required by Community standards.
higher
This is the case when a Member State decides to adopt
standards which are more stringent than the Community
standards so as to achieve a higher level of environmental
It will also apply when a firm invests in
protection.
environmental protection over and above the strictest
existing Community standards or where no Community
standards exist.

from the adoption of

three years

21. However, it has not been shown that aid has an incentive
effect of this kind where it is designed merely to help firms
to comply with existing or new Community technical
standards. Such standards constitute the ordinary law
with which firms must comply, and it is not necessary
to provide them with aid in order to encourage them to
obey the law (22).

23. Certain Member States have adopted, are in the process of
adopting or might consider adopting taxes the effects of
which are conducive to environmental protection. In some
cases, exemptions from or reductions in taxes are granted
to firms in particular categories in order to avoid placing
them in a difficult competitive situation. The Commission
takes the view that such measures may constitute State aid
within the meaning of Article 87 of the Treaty. However,
the adverse effects of such aid can be offset by the positive
effects of adopting taxes. Accordingly, if such exemptions
are necessary to ensure the adoption or continued
the
application of
Commission takes the view that
they are acceptable,
subject to certain conditions and for a limited period of
time. This period may last for 10 years if the conditions
are met. Thereafter, Member States will remain free to
renotify the measures in question to the Commission,
the same approach in its analysis
which could adopt
while
results
obtained in environmental terms.

taking into consideration the positive

to all products,

taxes applicable

24. Member States have also taken action in recent years to
promote the use of renewable sources of energy and
combined heat and energy production, which has the
the Commission given the major
encouragement of
environment. The Commission
advantages
therefore
to
view that, where measures
promote renewable sources of energy and the combined
production of electric power and heat constitute State aid,
they are acceptable subject to certain conditions. It must
be certain, however, that such aid is not in breach of other
provisions of the Treaty or secondary legislation.

for
takes

the
the

D. RELATIVE IMPORTANCE OF ENVIRONMENTAL AID

25. The data in the eighth survey on State aid in the European
Union in the manufacturing and certain other sectors (23)
show that between 1996 and 1998 environmental aid
accounted on average for only 1,85 % of
total aid
granted to the manufacturing and service sectors.

26. In the period 1994-1999 environmental aid was provided
predominantly in the form of grants. Proportionally
speaking, little use was made of the other forms of aid:
low-interest loans, State guarantees, etc.

27. As to the sectors receiving aid, the period 1998-1999 saw
an increase in aid for measures in the energy sector,
whether in support of energy saving or to promote the
use of new or renewable sources of energy, especially in
the form of ecotaxes.

(22) With the exception of SMEs, as provided for in point 20.

(23) COM(2000) 205 final, 11.4.2000.

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E. GENERAL CONDITIONS FOR AUTHORISING ENVIRON-

MENTAL AID

E.1. Investment aid

E.1.1. Transitional investment aid to help SMEs adapt to new

Community standards

28. For a period of three years from the adoption of new
compulsory Community standards,
investment aid to
help SMEs meet new standards may be authorised up to
a maximum of 15 % gross of eligible costs.

E.1.2. General conditions for authorising investment aid to

firms improving on Community standards

29. Investment

aid enabling firms

to improve on the
Community standards applicable may be authorised up
to not more than 30 % gross of the eligible investment
costs as defined in point 37. These conditions also apply to
aid where firms undertake investment in the absence of
mandatory Community standards or where they have to
undertake investment in order to comply with national
standards that are more stringent
than the applicable
Community standards.

E.1.3. Investment in energy

30. Investments in energy saving as defined in point 6 are
deemed equivalent
to investments to promote environ-
mental protection. Such investments play a major role in
achieving economically the Community objectives for the
environment (24).
for
are,
investment aid at the basic rate of 40 % of eligible costs.

therefore,

eligible

They

to

equivalent

environmental

32. Investments to promote renewable sources of energy are
deemed
investments
undertaken in the absence of mandatory Community
standards. It should also be borne in mind that measures
in support of renewable sources of energy are one of the
Community’s environmental priorities (27) and one of the
long-term objectives that should be encouraged most. The
rate of aid for investment in support of these forms of
energy is therefore 40 % of eligible costs.

all

serving

The Commission takes the view that renewable energy
installations
entire
community such as an island or residential area should
also benefit.
Investments made in this connection may
qualify for a bonus of 10 percentage points on top of
the basic rate of 40 % of eligible costs.

needs

the

an

of

The Commission considers that, where it can be shown to
be necessary, Member States will be able to grant
investment aid to support
renewable energy, up to
100 % of eligible costs. The installations concerned will
not be entitled to receive any further support.

E.1.4. Bonus for firms located in assisted regions

33. In regions which are eligible for national regional aid,
firms may receive aid to promote regional development.
To encourage them to invest further in the environment, it
to provide
should be possible, where
additional aid towards any environmental
investment
carried out in accordance with point 29 (28).

appropriate,

34. Consequently,

in regions eligible for

the
maximum rate of environmental aid applicable to eligible
costs as defined in point 37 below is determined as
follows.

regional aid,

31.

Investments in the combined production of electric power
and heat may also qualify under these guidelines if it can
be shown that the measures beneficial
in terms of the
protection of the environment because the conversion effi-
ciency (25) is particularly high, because the measures will
allow energy consumption to be reduced or because the
production process will be
to the
environment.
the Commission will
take into particular consideration the type of primary
energy used in the production process. It should also be
borne in mind that increased energy use from combined
production of heat and power is a Community priority for
the environment (26). Such investment may, therefore, be
given aid at the basic rate of 40 % of eligible cost.

In this connection,

less damaging

(24) Action plan to improve energy efficiency in the European

Community (COM (2000) 247 final, 26.4.2000).

(25) By (cid:145)conversion efficiency(cid:146) is meant the ratio between the quantity
of primary energy used to produce a secondary form of energy
is
and the quantity of secondary energy actually produced.
calculated as follows: electric energy produced + thermal energy
produced/energy used.

It

(26) Council Resolution of 18 December 1997 on a Community
(OJ C 4,

combined heat and power

strategy to promote
8.1.1998, p. 1).

In assisted regions the maximum rate of aid applicable is
the higher of the following two options:

(a) either the basic rate for environmental investment aid,
system), 40 % gross
(standard
i.e. 30 % gross
(investments in energy saving,
in renewable sources
of energy or to promote the combined production of
electric power and heat) or 50 % gross (investments in
renewable sources of energy that supply an entire
community), plus 5 percentage points gross in the
regions covered by Article 87(3)(c) and 10 percentage
points in the regions covered by Article 87(3)(a) (29);

(27) Council Resolution of 8 June 1998 on renewable sources of energy

(OJ C 198, 24.6.1998, p. 1).

(28) These bonuses are not available where the Member State grants
investment aid in accordance with the third paragraph of point 32
(aid of up to 100 % of eligible costs).

(29) Investments in assisted regions are eligible for investment aid if the
the guidelines on regional State aid (OJ C 74,

conditions of
10.3.1998, p. 9) are met.

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(b) or the regional aid rate plus 10 percentage points

E.1.7. Eligible costs

gross.

E.1.5. Bonus for SMEs

35. Where investments of the kind referred to in points 29 to
32 are carried out by small or medium-sized enterprises,
an increase of 10 percentage points gross may be auth-
orised (30). For the purposes of these guidelines, the defi-
nition of SMEs is that given by the relevant Community
texts (31).

The above bonuses for assisted regions and SMEs may be
combined, but the maximum rate of environmental aid
may never exceed 100 % gross of
the eligible costs.
SMEs do not qualify for a double bonus either under the
those
provisions applicable to regional aid or under
applicable in the environmental field (32).

E.1.6. The investments concerned

36. The investments concerned are investments in land which
are strictly necessary in order
to meet environmental
objectives, investments in buildings, plant and equipment
intended to reduce or eliminate pollution and nuisances,
and investments to adapt production methods with a view
to protecting the environment.

Spending on technology transfer through the acquisition
of operating licences or of patented and non-patented
know-how may also qualify. But any such intangible
asset must satisfy the following tests:

(a) it must be regarded as a depreciable asset;

(b) it must be purchased on market terms, from a firm in
which the acquirer has no power of direct or indirect
control;

(c) it must be included in the assets of

the firm, and
remain in the establishment of the recipient of the
aid and be used there for at
five years. This
condition does not apply if these intangible assets are
technically out of date. If it is sold during those five
years, the yield from the sale must be deducted from
the eligible costs and all or part of the amount of aid
must, where appropriate, be reimbursed.

least

37. Eligible costs must be confined strictly to the extra
the environmental

investment costs necessary to meet
objectives.

This has the following consequences: where the cost of
investment in environmental protection cannot be easily
take
identified in the total cost,
account of objective and transparent methods of calcu-
lation, e.g. the cost of a technically comparable investment
that does not though provide the same degree of environ-
mental protection.

the Commission will

In all cases, eligible costs must be calculated net of the
benefits accruing from any increase in capacity, cost
savings engendered during the first five years of the life
of
the investment and additional ancillary production
during that five-year period (33).

energy,

renewable

For
are
eligible
normally the extra costs borne by the firm compared
with a conventional power plant with the same capacity
in terms of the effective production of energy.

investment

costs

Where SMEs adapt to new Community standards, eligible
costs include additional investments needed to attain the
level of environmental protection required by those
standards.

Where the firm is adapting to national standards adopted
in the absence of Community standards, the eligible costs
consist of
investment costs necessary to
achieve the level of environmental protection required by
the national standards.

the additional

stringent

the eligible costs consist of

Where the firm is adapting to national standards which are
standards or
than the Community
more
undertakes a voluntary improvement on Community
standards,
the additional
investment costs necessary to achieve a level of environ-
mental protection higher than the level required by the
Community standards. The cost of investments needed to
reach the level of protection required by the Community
standards is not eligible.

(30) This bonus is not available where the Member State grants
investment aid in accordance with the third paragraph of point
32 (aid of up to 100 % of eligible costs).

(31) Commission Recommendation 96/280/EC of 3 April 1996
concerning the definition of small and medium-sized enterprises
(OJ L 107, 30.4.1996, p. 4).

(32) Investments by SMEs are eligible for investment aid under the
provisions of Commission Regulation (EC) No 70/2001 of 12
January 2001 on the application of Articles 87 and 88 of the
EC Treaty to State aid for small and medium-sized enterprises
(OJ L 10, 13.1.2001, p. 33).

Where no standards exist, eligible costs consist of
the
investment costs necessary to achieve a higher level of
environmental protection than that which the firm or
firms in question would achieve in the absence of any
environmental aid.

(33) If

the investments are concerned solely with environmental
protection without any other economic benefits, no additional
reduction will be applied in determining the eligible costs.

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E.1.8. Rehabilitation of polluted industrial sites

38. Interventions made by firms

repairing environmental
damage by rehabilitating polluted industrial sites may
these guidelines (34). The
come within the scope of
environmental damage concerned may be damage to the
quality of the soil or of surface water or groundwater (35).

Where the person responsible for the pollution is clearly
identified, that person must finance the rehabilitation in
accordance with the (cid:145)polluter pays(cid:146) principle, and no State
aid may be given. By (cid:145)person responsible for the pollution(cid:146)
is meant the person liable under the law applicable in each
Member State, without prejudice to the adoption of
Community rules in the matter.

Where the person responsible for the pollution is not
the
the cost,
identified or cannot be made to bear
person responsible for the work may receive aid (36).

Aid for the rehabilitation of polluted industrial sites may
amount to up to 100 % of the eligible costs, plus 15 % of
the cost of the work. The eligible costs are equal to the
cost of the work less the increase in the value of the land.

The total amount of aid may under no circumstances
exceed the actual expenditure incurred by the firm.

E.1.9. Relocation of firms

39. The Commission takes the view that as a rule the relo-
cation of firms to new sites does not constitute environ-
mental protection and does not therefore give entitlement
to aid under these guidelines.

The granting of aid may, however, be justified when a firm
established in an urban area or
in a Natura 2000
designated area lawfully carries on an activity that
creates major pollution and must, on account of
this
location, move from its place of establishment to a more
suitable area.

All the following criteria must be satisfied at the same
time:

(a) The change of location must be dictated on environ-
mental protection grounds and must have been
ordered by administrative or judicial decision.

(34) The Commission would point out that rehabilitation work carried
out by public authorities is not as such caught by Article 87 of the
Treaty. Problems of State aid may, however, arise if the land is sold
after rehabilitation at a price below its market value.

(35) All expenditure incurred by a firm in rehabilitating its site, whether
or not such expenditure can be shown as a fixed asset on its
balance sheet, ranks as eligible investment in the case of the reha-
bilitation of polluted sites.

(36) The person responsible for performing the work need not neces-
sarily be the person responsible for the pollution in the meaning in
which that expression is used here.

(b) The firm must comply with the strictest environmental
standards applicable in the new region where it
is
located.

A firm satisfying the above conditions may receive
investment
aid in accordance with point 29. The
provisions of point 35 concerning the granting of a
bonus for SMEs will apply.

the Commission will

the same capacity as

In order to determine the amount of eligible costs in the
case of relocation aid,
take into
account the yield from the sale or renting of the plant
or land abandoned, the compensation paid in the event
of expropriation and the costs connected with the
purchase of land or the construction or purchase of new
plant of
the plant abandoned.
Account may also be taken of any other gains connected
with the transfer of the plant, notably gains resulting from
an improvement, on the occasion of the transfer, in the
technology used and accounting gains associated with
relating to any
better use of
capacity increase may not be taken into consideration in
calculating the eligible costs conferring entitlement to the
granting of environmental aid.

Investments

the plant.

the administrative or

If
judicial decision ordering the
change of location results in the early termination of a
contract
land or buildings, any
penalties imposed on the firm for having terminated the
contract may be taken into consideration in calculating the
eligible costs.

the renting of

for

E.1.10. Common rules

40. Aid for investment to improve on Community standards
or undertaken where no Community standards exist may
not be granted where such improvements merely bring
companies into line with Community standards already
adopted but not yet in force. A firm may be given aid
to enable it to comply with national standards which are
more stringent than Community standards or where no
Community standards exist only if it complies with the
national standards by the final date laid down in the
relevant national measures. Investments carried out after
that date do not qualify (37).

E.2. Aid to SMEs for advisory/consultancy services in the

environmental field

SMEs

41. Advisory/consultancy services play an important part in
in environmental
to make progress
helping
protection. The Commission therefore takes
the view
that aid may be granted under the provisions of Regu-
lation (EC) No 70/200138 (38).

(37) The rules set out in this point are without prejudice to point 28

concerning aid for SMEs.

(38) Reference given in footnote 32.

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E.3. Operating aid

E.3.2. Rules applicable to all operating aid in the form of tax

reductions or exemptions

E.3.1. Rules applicable to all operating aid to promote waste

management and energy saving

42. The following rules apply to two types of operating aid,

namely:

(a) aid for

the management of waste where

such
management is in line with the hierarchical classifi-
cation of the principles of waste management (39);

(b) aid in the energy-saving field.

43. Where such aid is shown to be absolutely necessary,

it
should be strictly limited to compensating for extra
production costs by comparison with the market prices
of the relevant products or services (40). Such aid must
also be temporary and, as a general
rule, must be
wound down over time, so as to provide an incentive
for prices to reflect costs reasonably rapidly.

44. The Commission takes

firms

the view that

should
normally bear the costs of
treating industrial waste in
accordance with the (cid:145)polluter pays(cid:146) principle. However,
operating aid may be necessary where national standards
are
than the
applicable Community rules, or where national standards
are introduced in the absence of Community rules, so that
firms temporarily lose competitiveness at
international
level.

introduced which are more

stringent

Firms receiving operating aid towards the treatment of
industrial or non-industrial waste must
the
service provided in proportion to the amount of waste
they produce and/or the cost of treatment.

finance

45. All such operating aid is subject to a limited duration of
five years where the aid is (cid:145)degressive(cid:146). Its intensity may
amount to 100 % of the extra costs in the first year but
must have fallen in a linear fashion to zero by the end of
the fifth year.

46. In the case of (cid:145)non-degressive(cid:146) aid, its duration is limited to
five years and its intensity must not exceed 50 % of the
extra costs.

strategy

(39) Classification given in the Community

for waste
management (COM(96) 399 final of 30.7.1996). In this communi-
cation, the Commission recalls that waste management is a priority
objective for the Community in order to reduce the risks to the
environment. The concept of waste treatment must be looked at
from three angles: re-utilisation, recycling and recovery. Waste
whose production is unavoidable must be treated and eliminated
without danger.

(40) The concept of production costs must be understood as being net

of any aid but inclusive of a normal level of profit.

for

for

reasons

environmental

temporary exemptions

47. When adopting taxes that are to be levied on certain
activities
protection,
of
Member States may deem it necessary to make provision
for
certain firms notably
because of
the absence of harmonisation at European
level or because of the temporary risks of a loss of inter-
such exemptions
national competitiveness.
constitute operating aid caught by Article 87 of the EC
Treaty. In analysing these measures, it has to be ascertained
among other things whether the tax is to be levied as the
result of a Community decision or an autonomous
decision on the part of a Member State.

In general,

48. If the tax is to be levied as the result of an autonomous
decision on the part of a Member State, the firms affected
may have some difficulty in adapting rapidly to the new
tax burden. In such circumstances there may be justifi-
cation for a temporary exemption enabling certain firms
to adapt to the new situation.

49. If the tax is to be levied as the result of a Community

directive, there are two possible scenarios:

(a) a Member State applies tax to certain products at a rate
than the minimum rate laid down in the
higher
Community directive and grants an exemption to
certain firms, which, as a result, pay tax at a rate
which is lower but nevertheless at least equal to the
minimum rate set by the directive. The Commission
a
takes
temporary exemption may be justified to enable firms
to adapt to higher taxation and to provide them with
an incentive to act in a more environmentally friendly
manner;

the view that,

circumstances,

in those

(b) a Member State applies tax to certain products at the
minimum rate laid down in the Community directive
and grants an exemption to certain firms, which are
thus subject to taxation at a rate below the minimum
rate. If such an exemption is not authorised by the
directive in question,
it will constitute aid which is
it is
incompatible with Article 87 of
authorised by the directive, the Commission may take
the view that it is compatible with Article 87 in so far
as it is necessary and is not disproportionate in the
the Community objectives pursued. The
light of
Commission will be specially concerned to ensure
that any such exemption is strictly limited in time.

the Treaty.

If

50. In general, the tax measures in question should make a
significant contribution to protecting the environment.
Care should be taken to ensure that the exemptions do
not, by their very nature, undermine the general objectives
pursued.

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51. These exemptions can constitute operating aid which may

be authorised on the following conditions:

2. The provisions in point 51.1 may be applied to existing
taxes if the following two conditions are satisfied at the
same time:

1. When,

for environmental

reasons, a Member State
introduces a new tax in a sector of activity or on
products
in respect of which no Community tax
harmonisation has been carried out or when the tax
envisaged by the Member State exceeds that laid down
by Community legislation, the Commission takes the
view that exemption decisions covering a 10-year
period with no degressivity may be justified in two
cases:

exemptions

(a) these exemptions are conditional on the conclusion
of agreements between the Member State concerned
firms whereby the firms or
and the recipient
associations of firms undertake to achieve environ-
mental protection objectives during the period for
which the
apply or when firms
conclude voluntary agreements which have the
same effect. Such agreements or undertakings may
relate, among other things, to a reduction in energy
consumption, a reduction in emissions or any other
environmental measure. The
the
agreements must be negotiated by each Member
State and will be assessed by the Commission
when the aid projects are notified to it. Member
States must
the
ensure
entered
commitments
firms or
firms. The agreements concluded
associations of
between a Member State and the firms concerned
must stipulate the penalty arrangements applicable
if the commitments are not met.

strict monitoring of

substance of

into by

the

These provisions also apply where a Member State
makes a tax reduction subject to conditions that
have
agreements or
commitments referred to above;

effect

same

the

the

as

(a) the tax in question must have an appreciable
environmental

impact

terms

of

in

positive
protection;

(b) the derogations for the firms concerned must have
been decided on when the tax was adopted or must
have become necessary as a result of a significant
change in economic conditions that placed the
firms in a particularly difficult competitive situation.
In the latter instance, the amount of the reduction
may not exceed the increase in costs resulting from
the change in economic conditions. Once there is
no longer any increase in costs, the reduction must
no longer apply.

3. Member States may also encourage the development of
processes for producing electric power from conven-
tional energy sources such as gas that have an energy
efficiency very much higher than the energy efficiency
obtained with conventional production processes.
In
such cases, given the importance of such techniques
for environmental protection and provided that
the
primary energy used reduces significantly the negative
in terms of environmental protection,
effects
the
Commission takes
total exemptions
the view that
from taxes may be justified for a period of five years
where aid is non-degressive. Derogations for 10 years
may also be granted in accordance with the conditions
set out in points 51.1 and 51.2.

52. Where an existing tax is increased significantly and where
the Member
view that
derogations are needed for certain firms, the conditions
set out in point 51.1 as regards new taxes are applicable
by analogy.

concerned takes

State

the

(b) these exemptions need not be conditional on the
conclusion of agreements between the Member
State concerned and the recipient
the
firms
following alternative conditions are satisfied:

if

(cid:151) where the reduction concerns a Community tax,
the amount effectively paid by the firms after
the reduction must
than the
Community minimum in order to provide the
firms with an incentive to improve environ-
mental protection,

remain higher

53. When the reductions concern a tax that has not been
harmonised at Community level and when the domestic
tax is lower than or equal to the Community minimum,
the Commission takes the view that long-term exemptions
are not justified. In this case, any exemptions granted must
satisfy the conditions laid down in points 45 and 46 and
must, in any event, be covered by an express authorisation
to derogate from the Community minimum.

In all cases of reduction of tax, the Member State may
grant operating aid in accordance with points 45 and 46.

(cid:151) where the reduction concerns a domestic tax
imposed in the absence of a Community tax,
the firms eligible for the reduction must never-
theless pay a significant proportion of
the
national tax.

E.3.3. Rules applicable to operating aid for renewable energy

sources

54. As regards the production of renewable energy, operating
aid will usually be allowable under these guidelines.

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55. The Commission takes the view that such aid qualifies for
special treatment because of the difficulties these sources
of energy have sometimes encountered in competing
effectively with conventional sources.
It must also be
borne in mind that it is Community policy to encourage
the development of these sources of energy, notably on
environmental grounds. Aid may be necessary in particular
where the technical processes available do not allow
energy to be produced at unit costs comparable to those
of conventional sources.

56. Operating aid may be justified here in order to cover the
difference between the cost of producing energy from
renewable energy sources and the market price of that
energy. The form of such aid may vary depending on
the kind of energy involved and the support mechanism
worked out by the Member State. Moreover, when
studying cases, the Commission will take account of the
competitive position of each form of energy involved.

57. Member States may grant aid for renewable energy sources

as follows:

E.3.3.1. Option 1

58. In the renewable energy field, unit investment costs are
particularly high and generally account for a significant
proportion of
firms’ costs and do not allow firms to
charge competitive prices on the markets where they sell
energy.

therefore, be
operating costs. The Commission will,
amenable to operating aid exceeding the amount of
investment where Member States can show that
the
aggregate costs borne by the firms after plant depreciation
are still higher than the market prices of the energy.

E.3.3.2. Option 2

61. Member States may grant support for renewable energy
sources by using market mechanisms
such as green
certificates or tenders. These systems allow all renewable
energy producers to benefit
indirectly from guaranteed
demand for their energy, at a price above the market
price for conventional power. The price of these green
certificates
fixed in advance but depends on
supply and demand.

is not

62. Where they constitute State aid, these systems may be
authorised by the Commission if Member States can
show that support is essential to ensure the viability of
the renewable energy sources concerned, does not in the
aggregate result in overcompensation for renewable energy
and does not dissuade renewable energy producers from
becoming more competitive. With a view to verifying that
these criteria are met, the Commission intends to authorise
these aid systems for a period of ten years, after which it
will have to be assessed whether the support measure
needs to be continued.

E.3.3.3. Option 3

59. In order to take better account of

for

this market-access
barrier for renewable energies, Member States may grant
aid to compensate
the difference between the
renewable energy and the market
production cost of
price of
the form of power concerned. Any operating
aid may then be granted only for plant depreciation.
Any further energy produced by the plant will not
qualify for any assistance. However,
the aid may also
cover a fair return on capital if Member States can show
that this is indispensable given the poor competitiveness of
certain renewable energy sources.

In determining the amount of operating aid, account
should also be taken of any investment aid granted to
the firm in question in respect of the new plant.

When notifying aid schemes to the Commission, Member
States must state the precise support mechanisms and in
particular the methods of calculating the amount of aid. If
the Commission authorises the scheme, the Member State
must then apply those mechanisms and methods of calcu-
lation when it comes to granting aid to firms.

60. Unlike most other renewable sources of energy, biomass
investment but brings higher

relatively less

requires

same quantity of

63. Member States may grant operating aid to new plants
producing renewable energy that will be calculated on
the external costs avoided. These are the
the basis of
environmental costs that society would have to bear if
energy were produced by a
the
forms of
production plant operating with conventional
energy. They will be calculated on the basis of
the
difference between, on the one hand, the external costs
produced and not paid by renewable energy producers
and, on the other hand, the external costs produced and
not paid by non-renewable energy producers. To carry out
these calculations, the Member State will have to use a
method of calculation that is internationally recognised
and has been communicated to the Commission. It will
things a reasoned and
have to provide among other
quantified comparative cost analysis,
together with an
external
assessment of
costs, so as to demonstrate that the aid does genuinely
compensate for external costs not covered.

competing energy producers’

At any event, the amount of the aid thus granted to the
renewable energy producer must not exceed EUR 0,05 per
kWh.

Furthermore, the amount of aid granted to producers that
exceeds the amount of aid resulting from option 1 must be
reinvested by the firms in renewable sources of energy. It
will be taken into account by the Commission if
this
activity also qualifies for State aid.

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64. If Option 3 is to remain consistent with the general rules
on competition, the Commission must be certain that the
aid does not give rise to any distortion of competition
contrary to the common interest.
it
in an actual
must be certain that
the aid will result
overall
increase in the use of renewable energy sources
at the expense of conventional energy sources, and not
in a simple transfer of market shares between renewable
energy sources. The following conditions will
therefore
have to be met:

In other words,

(cid:151) aid granted under this option must form part of a
scheme which treats firms in the renewable energy
sector on an equal footing;

(cid:151) the scheme must provide for aid to be granted without
discrimination as between firms producing the same
renewable energy;

(cid:151) the scheme must be re-examined by the Commission

every five years.

E.3.3.4. Option 4

65. Member States may still grant operating aid in accordance
with the general rules governing such aid in points 45 and
46.

E.3.4. Rules applicable to operating aid for the combined

production of electric power and heat

66. The Commission takes the view that operating aid for the
combined production of electric power and heat may be
justified provided that the conditions set out in point 31
are met. Such aid may be granted to firms distributing
electric power and heat to the public where the costs of
producing such electric power or heat exceed its market
In similar circumstances, operating aid may be
price.
granted in accordance with the rules in points 58 to 65.
The decision as to whether the aid is essential will take
account of
the costs and revenue resulting from the
production and sale of the electric power or heat.

67. Operating aid may be granted on the same conditions as
for the industrial use of
the combined production of
electric power and heat where it can be shown that the
production cost of one unit of energy using that technique
exceeds the market price of one unit of conventional
energy. The production cost may include the plant’s
normal return on capital, but any gains by the firm in
terms of heat production must be deducted from
production costs.

F. POLICIES, MEASURES AND INSTRUMENTS FOR REDUCING

GREENHOUSE GASES

68. The Kyoto Protocol, signed by the Member States and by
the Community, provides that the parties undertake to
limit or
reduce greenhouse gas emissions during the
period 2008-2012. For the Community as a whole, the

target is to reduce greenhouse gas emissions by 8 % of
their 1990 level.

to achieve

69. Member States and the Community, as parties to the
the greenhouse gas
Protocol, will have
reductions by means of
common and coordinated
policies and measures (41), including economic instruments,
and also by means of the instruments established by the
Kyoto Protocol
emissions
trading, joint implementation, and the clean development
mechanism.

itself, namely international

70. In the absence of any Community provisions in this area
and without prejudice to the Commission’s
right of
is for each
initiative in proposing such provisions,
Member State to formulate the policies, measures and
instruments it wishes to adopt in order to comply with
the targets set under the Kyoto Protocol.

it

71. The Commission takes the view that some of the means
adopted by Member States to comply with the objectives
of the Protocol could constitute State aid but it is still too
early to lay down the conditions for authorising any such
aid.

G. BASIS OF EXEMPTION FOR ALL PROJECTS EXAMINED BY

THE COMMISSION

72. Subject

in these
to the limits and conditions set out
guidelines, environmental aid will be authorised by the
Commission pursuant
the EC
Treaty for (cid:145)aid to facilitate the development of certain
economic activities or of certain economic areas, where
such aid does not adversely affect trading conditions to
an extent contrary to the common interest(cid:146).

to Article 87(3)(c) of

the exemption provided for

73. Aid to promote the execution of important projects of
common European interest which are an environmental
priority and will often have beneficial effects beyond the
frontiers of the Member State(s) concerned can be auth-
orised under
in Article
the aid must be
87(3)(b) of
necessary for the project
to proceed, and the project
must be specific, well defined and qualitatively important
and must make an exemplary and clearly identifiable
contribution to the common European interest. When
this exemption is applied, the Commission may authorise
aid at higher rates than the limits laid down for aid auth-
orised pursuant to Article 87(3)(c).

the EC Treaty. However,

H. OVERLAPPING AID FROM DIFFERENT SOURCES

74. The

aid ceilings

resources. Aid

stipulated in these guidelines

are
applicable irrespective of whether the aid in question is
financed wholly or in part from State resources or from
these
Community
guidelines may not be combined with other forms of
State aid within the meaning of Article 87(1) of
the
Treaty or with other forms of Community financing if
such overlapping produces an aid intensity higher than
that laid down in these guidelines.

authorised under

(41) For details of common and coordinated policies and measures see
in particular (cid:145)Preparing for Implementation of the Kyoto Protocol(cid:146)
(COM(1999) 230 of 19.5.1999).

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In the case of aid serving different purposes and involving
the same eligible costs, the most favourable aid ceiling will
apply.

I.

(cid:145)APPROPRIATE MEASURES(cid:146) WITHIN THE MEANING OF
ARTICLE 88(1) OF THE EC TREATY

75. Acting under Article 88(1) of the Treaty, the Commission
will propose the following appropriate measures to the
Member States in respect of their existing systems of aid.

76.

such aid is

compatible with the

In order to enable it to assess any substantial amounts of
aid granted under authorised schemes and to decide
common
whether
market, the Commission will propose, as an appropriate
measure under Article 88(1) of the Treaty, that Member
States should notify it in advance of any individual case of
investment aid granted under an authorised scheme where
the eligible costs exceed EUR 25 million and where the
aid exceeds the gross grant equivalent of EUR 5 million.
Notification will be given by means of the form of which a
model is shown in the Annex.

J. APPLICATION OF THE GUIDELINES

in

Journal

the Official

81. These guidelines will become applicable when they are
published
European
Communities. They will cease to be applicable on 31
December 2007. After consulting the Member States, the
Commission may amend them before that date on the
basis of important competition policy or environmental
policy considerations or
to take account of
other Community policies or international commitments.

in order

the

of

82. The Commission will apply these guidelines to all aid
projects notified in respect of which it is called upon to
take a decision after the guidelines are published in the
Journal, even where the projects were notified
Official
prior to their publication.

In the case of non-notified aid, the Commission will apply:

(a) these guidelines if the aid was granted after their publi-
European

the Official

Journal

the

of

cation
Communities;

in

77. The Commission will also propose, as an appropriate
measure under Article 88(1), that Member States should
bring their existing environmental aid schemes into line
with these guidelines before 1 January 2002.

78. The Commission will ask the Member States to confirm
within one month of receipt of the proposed measures
referred to in points 75 to 77 that they agree to the
proposals. In the absence of any reply, the Commission
will take it that the relevant Member State does not agree.

79. The Commission would point out that, with the exception
of aid classed as de minimis aid under Regulation (EC) No
69/2001 (42), these guidelines do not affect the obligation
incumbent on Member States under Article 88(3) of the
Treaty to notify any aid schemes, any changes to those
schemes and any individual aid granted to firms outside
the framework of authorised schemes.

80. The Commission intends to ensure that any authorisation
for a future scheme complies with these guidelines.

(b) the guidelines in force when aid is granted in all other

cases.

K. INTEGRATION OF ENVIRONMENTAL POLICY INTO OTHER

STATE AID GUIDELINES

83. Article 6 of the Treaty states that:

(cid:145)Environmental protection requirements must be inte-
grated into the definition and implementation of the
Community policies and activities referred to in Article
3, in particular with a view to promoting sustainable
development.(cid:146)

When the Commission adopts or revises other Community
guidelines or frameworks on State aid, it will consider how
those requirements can best be taken into account. It will
also examine whether it would not be expedient to ask the
Member States to provide an environmental impact study
whenever they notify it of an important aid project, irres-
pective of the sector involved.

(42) OJ L 10, 13.1.2001, p. 30.

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ANNEX

ADDITIONAL INFORMATION ORDINARILY TO BE SUPPLIED WHEN NOTIFYING STATE AID FOR
ENVIRONMENTAL PURPOSES UNDER ARTICLE 88(3) OF THE TREATY

(Schemes, cases of aid granted under an approved scheme, and one-off aid measures)

To be attached to the general questionnaire in Section A of Annex II to the Commission letter to Member States of
2 August 1995 on notifications and standardised annual reports:

1. Objectives.

Detailed description of the objectives of the measure, and of the type of environmental protection it is intended to
promote.

2. Description of the measure.

Detailed description of the measure and of the recipients.

Description of the total costs of the investments involved and of the eligible costs.

If the measure in question has already been applied in the past, what environmental results have been obtained?

If the measure is a new one, what environmental results are anticipated, and over what period?

If the aid is to be granted towards an improvement on standards, what are the standards applicable, and in what way
does the measure allow an appreciably higher level of environmental protection to be achieved?

If the aid is to be granted in the absence of mandatory standards, please give a detailed description of the way.