| Spanish aid for domestic coal unlawful |
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28 September 2010 | Press release The Commission’s green light on Spain’s financial support for indigenous coal breaks EU objectives and legislation on state aid and on the environment. A decision by the European Commission to approve the Spanish government’s scheme to financially support its domestic coal sector flies in the face of EU rules on both the environment and on state aid, leading environmental law organisation ClientEarth has stated. ClientEarth lodged a complaint with the European Commission in July, setting out the ways in which Spain’s scheme to give power plants using domestic coal preferential access to the electricity market were unlawful. This week, the Commission is expected to green-light the proposal despite a number of national and international bodies (the Spanish National Commission for Energy, the Spanish National Commission for Competition and the International Energy Agency) observing that the state aid would distort competition, as well as compromising the EU’s climate and environmental objectives. The public interest law organisation argues that Spain’s plan breaches rules on the provision of state aid because supporting indigenous coal operations will distort the market against other more efficient and less damaging electricity sources, such as co-generation power stations using gas and steam, and renewable sources. The law organisation’s complaint also emphasises the disparity between providing state support for coal plants and EU objectives and legislation on climate change and air quality, especially in cases such as Spain’s, where the aid counteracts efforts to support renewable energy. Marta Ballesteros, senior lawyer at ClientEarth, says: “The Commission’s plan to approve Spain’s support for its coal industry sends confusing signals about the sort of investments likely to reap dividends in Europe’s power sector in future. “It will also artificially skew the market against plants producing energy by cleaner means. The Spanish government should not be allowed to undermine the progressive environmental objectives set by the EU and the Commission should not set this troubling precedent.” Arguments by the Spanish government that the financial support is necessary to achieve energy security are not credible, given that the country has exported energy for the past six years and has been a leader in developing renewable energy sources. No assessment on all possible options to increase energy supply with domestic sources has been done by Spain; the reasons for the state aid are not security of supply. The Spanish government already faces challenges from adversely affected companies in its national courts, and the matter could be referred to the European courts for determination. Notes to editors ClientEarth’s complaints to the European Commission can be found here: http://www.clientearth.org/clientearth-complaint-against-spanish-subsidies-for-coal-power-plants For further information and comment contact ClientEarth: Mike Haines | Communications officer | t. +44 (0) 207 749 5978 | This e-mail address is being protected from spambots. You need JavaScript enabled to view it Katherine Sladden | Communications officer | t. +44 (0)203 0305954 This e-mail address is being protected from spambots. You need JavaScript enabled to view it About ClientEarth ClientEarth is a non-profit environmental law organisation based in London, Brussels and Warsaw. We are lawyers working at the interface of law, science and policy. Using the power of the law, we develop legal strategies and tools to address major environmental issues. As legal experts working in the public interest, we act to strengthen the work of our partners – both governments and NGOs. www.clientearth.org |
