| Media briefing: Environmental groups go to court over Spanish state aid for coal |
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15 February 2011 | Briefing Environmental groups are applying to intervene in a series of state aid cases at the EU General Court that could undermine national and international environmental progress by allowing state aid for burning domestic coal in Spain. Background: On 29 September 2010, the European Commission declared Spanish subsidies for coal power stations legal under European state aid rules. This would enable Spain to further support its struggling coal industry. In response, several of Spain’s energy companies and the regional authority of Galicia have launched actions seeking to annul the decision. They argue that this application of state aid will unfairly skew the European energy market.Today’s intervention: Environmental law organisation ClientEarth, WWF, Greenpeace Spain and Greenpeace International are applying to intervene in support of the actions for annulment, arguing that the Commission’s decision flouts substantive and procedural EU laws on both state aid and the environment. They say that an annulment of the Commission’s decision will contribute to improving environmental protection in Spain, by preventing an artificial increase in coal-based electricity production. The groups are also concerned that if the Commission’s decision is allowed to stand, other member states may use similar state aid to prop up their own coal power sectors. James Thornton, CEO ClientEarth, says: “This case could reverse a politically driven decision undermining efforts to promote green electricity production in Spain and throughout the EU. The Commission’s decision compromises Spain’s economic, environmental and climate imperatives as well as the European Union’s flagship policies. If allowed to stand, the Commission’s decision would also open the door for other member states to bolster their coal sectors and could issue in a new era of environmentally destructive protectionism. ” Aida Vila, Climate and Energy Campaigner for Greenpeace Spain, says: “It is crucial that we overturn the Commission’s approval of Spanish subsidies that gives the coal industry a competitive advantage. The Spanish government is putting pressure on the utilities companies bringing this case to withdraw their claim. We are pleased to provide extra support to those fighting for genuine economic and environmental progress, against short-termism and corporate interests.” Mark Johnston, Senior Policy Advisor at WWF in Brussels, says: “The Commission cut corners to give its approval thus denying the chance for key claims to be tested. If the actions we support are successful, the Commission will be forced to start again while implementation is suspended. Given that Spain is not short of electricity, the subsidy has no lawful justification.”
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Notes – EU law on state aid and the environment
Article 11 of the Treaty on the Functioning of the European Union (ex Article 6 TEC) states: “Environmental protection requirements must be integrated into the definition and implementation of the Union policies and activities, in particular with a view to promoting sustainable development.” Article 3(3) of the Treaty of the European Union states in relation to sustainable development: “The Union shall establish an internal market. It shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment.” ClientEarth, Greenpeace and WWF are represented by Arnold & Porter before the EU General Court in the applications to intervene on the following cases: Gas Natural Fenosa SDG v Commission (Case T-484/10) Iberdrola v. Commission (Case T-486/10) Endesa and Endesa Generacion v. Commission (Case T-490/10) Comunidad Autonoma de Galicia v. Commission (Case T-520/10)
Mike Haines | Communications officer | ClientEarth The Hothouse, 274 Richmond Road, London, E8 3QW |
