More state aid to be allowed for green projects, EU’s Vestager says

BRUSSELS, Nov 4 (Reuters) – EU countries will be allowed to pump more money into green projects in climate, energy and the environment under new state aid rules to be announced shortly, EU competition chief Margrethe Vestager said on Thursday.

The 27-country bloc aims to overhaul its economy to reach net zero greenhouse gas emissions by 2050, a goal that will require huge investments in low-carbon power and infrastructure.

Vestager, who is now reviewing the bloc’s competition rules, said this would include new state aid rules for climate, energy and the environment.

“These new rules will vastly expand the types of project that governments can support, to cover the full range of goals of our Green Deal,” she said at an event organised by the Danish competition agency in Copenhagen.

“And right across the board, the new rules will allow for much larger amounts of state aid when that’s needed to support these goals,” Vestager said.

She said this kind of state aid will come with tighter conditions to ensure a level playing field. Details are expected to be announced on Nov. 17.

Vestager spoke as nations and organisations gathered in Glasgow for the U.N. climate conference.

Photo – European Commissioner for Competition Margrethe Vestager . EPA-EFE/JOSE SENA GOULAO

(Reporting by Foo Yun Chee Editing by Chizu Nomiyama)