September 06, 2008

EU authorizes state aid for coal innovation and environmental protection in Spain

The European Commission has decided not to raise objections to a Spanish State aid measure to be granted to the region of Castilla y Leon for research, development and innovation purposes as well as for environmental protection related to the coal mining sector.

The aid amounts to approximately EUR 3 million. The objective of the aid for research, development and innovation will be to
1. Encourage the implementation of research, technological development and innovation projects
2. Improve health and safety conditions for work in mines
3. Optimize the use of mining reserves and resources
4. Promote technological innovation in order to reduce the negative environmental impact of mines.

The Commission assessed that the aid will have an incentive character, in that it should encourage the beneficiary to devote more effort to research, development and innovation projects. The aid will be granted in accordance with the requirements of EU legislation in the field, namely regarding admissible amounts of aid and eligible costs.

As regards the aid for environmental protection, the Commission assessed that it aims to reduce the environmental degradation caused by mining activities and is therefore compatible with EU legislation. It will be granted for SMEs to comply with new Community environmental standards, to improve on the Community environmental standards and for advisory services on environmental matters to SMEs.