The European Commission has adopted new state aid rules for sustainable transport

The European Commission has adopted a new state aid framework for land and multimodal transport, aimed at supporting the transition to more sustainable modes of transport for passengers and goods, simplifying procedures for member states, and updating EU rules for rail, inland waterway, and multimodal transport.

The European Commission has adopted new state aid rules for land and multimodal transport, in a package aimed at accelerating the use of more sustainable transport modes for passengers and goods and modernizing the applicable European framework for the sector. The new package includes the Guidelines on state aid for land and multimodal transport, LMT Guidelines, and the Transport Block Exemption Regulation, TBER, which will come into force on March 30, 2026.

In short 1. The Commission has adopted two new instruments for state aid in land and multimodal transport, LMT Guidelines and TBER.

2. The new rules support more sustainable transport modes than road transport, including rail transport, transport on inland waterways, and sustainable multimodal transport.

3. TBER exempts certain categories of aid from the obligation of notification and prior approval by the Commission.

4. The guidelines clarify the possibilities for granting aid for the construction and modernization of rail and inland waterway facilities, for launching new commercial connections, and for compensating certain public service obligations in the rail freight sector.

5. The new rules introduce more flexible conditions for measures that directly contribute to the green and digital transition, including for reducing external transport costs and for interoperability.

6. The framework includes guarantees to support the entry and development of new operators and to facilitate access for SMEs, small mid-caps, and new entrants to financing for rolling stock and inland vessels.

7. TBER will be applicable until December 31, 2034, while the LMT Guidelines do not have an expiration date.

The Commission specified that the new rules replace the 2008 Guidelines on state aid for railway undertakings and create a coherent state aid framework for a wide range of sustainable transport modes and support measures, while maintaining guarantees against unjustified distortions of competition.

Regarding the LMT Guidelines, the new guidelines establish the conditions under which state aid that must be notified to the Commission for approval before being granted can be declared compatible with the internal market. They cover all land transport modes that are more sustainable than road transport. Included are rail transport, transport on inland waterways, and sustainable multimodal transport. In the case of multimodal transport, at least one of the modes used must be rail transport or transport on inland waterways or combine land transport with short-sea shipping.

The Commission shows that the guidelines clarify the possibilities for several operating and investment aid measures. These include aid for the construction and modernization of railway service facilities and inland waterway facilities, aid for launching new commercial connections by rail and on inland waterways, as well as clarifying the possibilities for aid in the form of reimbursement for fulfilling public service obligations in the rail freight transport sector.

The new rules also introduce more flexible conditions for measures that directly contribute to the green and digital transition. These include aid aimed at reducing external transport costs and aid that promotes interoperability, such as support for safer and more efficient operation between national railway systems. According to the Commission, these provisions are designed to support the shift from road to more sustainable transport modes, while ensuring that the aid remains targeted and proportionate.

The package also introduces guarantees to support the entry and development of new operators in sustainable land transport markets. The rules facilitate access to financing for SMEs, small mid-caps, and new entrants for the acquisition of rolling stock and vessels for inland waterways, while maintaining effective competition.

In parallel, TBER complements the guidelines by exempting certain categories of aid in the rail, inland waterways, and sustainable multimodal transport sectors from the obligation of notification and prior approval by the Commission. The Commission describes the new exemption framework as a major simplification, which will allow member states to grant aid quickly when the conditions are met. As a result, many measures will be able to be implemented without prior approval from the Commission.

In a statement included in the press release, Teresa Ribera, Executive Vice President for a clean, just, and competitive transition, stated: "With today’s adoption of the Land and Multimodal Transport Guidelines and the Transport Block Exemption Regulation, we equip Member States with a modern and coherent State aid framework that supports sustainable and interoperable land transport while safeguarding fair competition. These rules simplify procedures and facilitate public support for sustainable transport solutions, thus contributing to a more efficient, affordable and greener European land transport."

In the Romanian version, the quote can be rendered as: "By today’s adoption of the Guidelines on land and multimodal transport and the Regulation on block exemption in transport, we equip member states with a modern and coherent state aid framework that supports sustainable and interoperable land transport, while safeguarding fair competition. These rules simplify procedures and facilitate public support for sustainable transport solutions, thus contributing to a more efficient, affordable, and greener European land transport."

The Commission also specified that TBER will be applicable until December 31, 2034, while the LMT Guidelines have no expiration date. Both instruments will come into force on March 30, 2026.

The adoption of the new rules follows the conclusions of the 2019 evaluation exercise regarding the existing rules applicable to the sustainable land transport sector. According to the Commission, this evaluation showed that the railway guidelines contributed to encouraging modal shift to rail transport and promoting interoperability, but also that adjustments were needed to reflect market developments, technological changes, and the current strategic priorities of the Union.

The Commission recalls that in October 2021 it published an inception impact assessment regarding the revision of the railway guidelines and a roadmap for a new block exemption regulation for rail, inland waterways, and multimodal transport. In December 2022, the Council adopted an enabling regulation that authorized the Commission to adopt the new exemption regulation. In March 2024, the European executive published a call for evidence regarding TBER, followed by a public consultation on the draft guidelines and regulation. All these steps contributed to the final form of the rules now adopted.

https://2eu.brussels/ro/stiri/comisia-europeana-a-adoptat-noi-reguli-de-ajutor-de-stat-pentru-transportul-sustenabil