Commission approves €570 million Italian State aid scheme to reduce emissions in ports

(Credit: Unsplash)

This article is brought to you in association with the European Commission.


The European Commission has approved, under EU State aid rules, a €570 million Italian scheme to incentivise ships to use shore-side electricity when they are at berth in maritime ports. The measure contributes to reducing greenhouse gas emissions, air pollution and noise in line with the objectives of the European Green Deal.

The Italian measure

Italy notified the Commission of its plans to adopt a €570 million scheme to incentivise ships operators to connect to shore-side electricity infrastructure when at berth in maritime ports in order to power onboard services, systems and equipment. The scheme will run until 31 December 2033.

Under the scheme, the aid takes the form of a reduction of up to 100% of the so-called ‘general system charges’. Those charges are included in the electricity price and aimed at financing certain public policy objectives, including renewable energy. The reduction will result in a lower electricity price for ship operators when purchasing shore-side electricity and will bring the cost of electricity at a competitive level with the cost of producing electricity on-board through fossil-fuelled engines. By lowering the cost of shore-side electricity for ships, the measure will incentivise ship operators to opt for the more environmentally friendly electricity supply, thereby avoiding significant greenhouse gas emissions, air pollutants and noise emissions.

Initially, the reduction will cover 100% of the general system charges. Italy committed to set up an annual monitoring mechanism to verify the difference between the actual costs of purchasing shore-side electricity and the actual costs of self-generating electricity using fossil fuels onboard and will adjust the level of the aid accordingly.

The Commission’s assessment

The Commission assessed the scheme under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union, which enables Member States to support the development of certain economic activities subject to certain conditions, and the Guidelines on State aid for climate, environmental protection and energy (‘CEEAG’), which allow Member States to support measures reducing or removing CO2 emissions.

The Commission found that:

  • The scheme is necessary and appropriate to incentivise the use of shore-side electricity, thereby reducing greenhouse gas emissions and increasing the level of environmental protection.
  • The scheme has an “incentive effect”, as the beneficiaries would not use shore-side electricity without public support.
  • The scheme has a limited impact on competition and trade within the EU. In particular, the aid is proportionate and any negative effect on competition and trade in the EU will be limited in view of the design of the measure, which applies to all interested companies. Moreover, Italy committed to set up an annual monitoring mechanism which will ensure that the aid remains necessary and proportionate throughout its duration, taking into account price and market developments.

On this basis, the Commission approved the Italian measure under EU State aid rules.

Background

The Commission’s 2022 CEEAG provide guidance on how the Commission assesses the compatibility of environmental protection, including climate protection, and energy aid measures which are subject to the notification requirement under Article 107(3)(c) TFEU.

The Guidelines create a flexible, fit-for-purpose enabling framework to help Member States provide the necessary support to reach the Green Deal objectives in a targeted and cost-effective manner. The rules involve an alignment with the important EU’s objectives and targets set out in the European Green Deal and with other recent regulatory changes in the energy and environmental areas and will cater for the increased importance of climate protection.

With the European Green Deal Communication in 2019, the Commission set an objective of net zero emissions of greenhouse gases in 2050 that is enshrined in the European Climate Law. In force since July 2021, the law also introduced the intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030. Through the adoption of the ‘Fit for 55′ legislative proposals, the EU has in place legally binding climate targets covering all key sectors in the economy.

On 13 September 2023, the European Parliament and the Council adopted the FuelEU Maritime Regulation setting up a common EU regulatory framework to increase the share of renewable and low-carbon fuels in the fuel mix of international maritime transport, as well as the Alternative Fuel Infrastructure Regulation, aiming at ensuring the availability of a dense and widespread network of alternative fuels infrastructure across the Union, including onshore power supply infrastructure at EU ports.

More information will be made available under the case number SA.105117 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.

Quote(s)

This €570 million Italian scheme will incentivise ship operators to use shore-side electricity rather than electricity produced on-board from fossil fuels. With this measure, Italy will contribute to the ambitious EU target of reducing transport emissions by at least 90% by 2050 while ensuring competition is not distorted.

Margrethe Vestager, Executive Vice-President in charge of competition policy


Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

UN News Massive tent settlement of displaced residents extends along the damaged Gaza coastline.

Palestinians yearn for ‘a return to normal life’, says top Middle East peace envoy

This article is published in association with United Nations. The UN is continuing efforts to support Palestinians in Gaza amid major challenges to humanitarian access, reconstruction and the restoration of essential services, according to Ramiz Alakbarov, Acting UN Special Coordinator for the Middle East Peace Process. Speaking to UN News on the margins of the UN […]
©UNIFIL/Tilak Pokharel UNIFIL personnel distribute food kits to displaced families in Saida, Lebanon (file).

Lebanon: One in five children goes to bed hungry, says UNICEF

This article is published in association with United Nations. Four in five households in Lebanon struggle to afford basic necessities today, with children increasingly going without food, missing school and being pushed into work as conflict compounds years of economic crisis. “I wanted to buy clothes for my children, but I could not. I also wanted […]

World News in Brief: Deadly Myanmar strikes as Malaysia begins deportations, new emergency funding released, Gaza and West Bank update

The UN chief on Tuesday strongly condemned an airstrike that reportedly killed at least 50 people at a market in Myanmar’s Rakhine state and called for those responsible to be held to account. Forces from the military junta reportedly hit Kyauktaw township around midday on Monday, when the market’s more than 200 shops were busy […]
This article is published in association with European Investment Bank.

EU provides €61 million in humanitarian aid amidst rapidly deteriorating situation in Ethiopia

This article is brought to you in association with the European Commission. Amid fears of renewed conflict in Northern Ethiopia, the European Union is providing €61 million in humanitarian funding to help the most vulnerable people in Ethiopia affected by conflict, displacement, disease outbreaks and climate-related hazards, including the impact of El Niño. The European Union […]
© UNDP A worker installs solar panels in Lanao del Sur in the Philippines.

From energy crisis to energy transition: How renewables are reshaping energy security

This article is published in association with United Nations. The continuing conflict in the Middle East is disrupting global energy markets and pushing up fuel prices, with knock-on effects far beyond the region. For Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA), the crisis is also reshaping how the world understands the phrase […]
Countries adopted on Saturday a new global blueprint for tackling rapidly evolving forms of crime, as the UN’s largest gathering on crime prevention and criminal justice opened in Abu Dhabi with a call for stronger international cooperation. The Abu Dhabi Declaration was adopted by acclamation at the opening of the 15th United Nations Congress on Crime Prevention and Criminal Justice, bringing governments together around challenges ranging from cybercrime and fraud to the growing criminal exploitation of digital technology. The Declaration highlights an increasingly complex landscape in which services, infrastructure and technology can be exploited by criminals, including emerging trends described as “crime as a service” and “violence as a service”. At the same time, countries committed to making greater use of technology themselves, including by digitalizing justice systems and harnessing artificial intelligence in criminal justice responses. The Declaration stresses that safeguards must accompany those changes, including human oversight, transparency, due process and data protection. ‘Justice cannot be a privilege’ In a video message to the Congress, UN Deputy Secretary-General Amina Mohammed said the meeting was taking place at a time of profound change. “Justice cannot be a privilege. It must protect every person, uphold every person’s rights and leave no one behind,” said Ms. Mohamed. “This Congress is an opportunity to renew our shared commitment to justice and the rule of law, and to translate that commitment into action.” Countries are already being encouraged to put the Declaration into practice through the voluntary Pledge4Justice initiative, under which participating governments are announcing concrete, time-bound actions on crime prevention and criminal justice through 2031. The Abu Dhabi National Exhibition Centre with its curved glass tower and surrounding buildings reflected in calm water at dusk. UNODC The Abu Dhabi National Exhibition Centre where the 15th UN Crime Congress is set to take place. From Kyoto to Abu Dhabi Opening the Congress, UN Office on Drugs and Crime (UNODC) Executive Director Monica Juma framed the gathering as both a response to a changing criminal landscape and a test of international cooperation. “Today, the world convenes in Abu Dhabi to reaffirm that the rule of law and criminal justice are essential to the safety and security of people and the planet,” said Ms. Juma. “At a time when confidence in multilateralism is faltering, let Abu Dhabi be a testament to international cooperation.” Five years after the previous Congress in Kyoto, Japan, Ms. Juma said the world had reached another “inflection point”, with technology and artificial intelligence advancing at extraordinary speed. The same platforms connecting billions of people can also connect criminals, she warned, while digital currencies can conceal illicit profits and digital tools can be used to deceive, manipulate and exploit. Technology, she argued, is not simply accelerating crime but changing its character, while organized criminal networks increasingly exploit weaknesses across borders and institutions. Tweet URL Protecting people as the ‘north star’ Behind those broad trends, Ms. Juma urged delegates to focus on the people most exposed to harm, including children recruited by gangs, women facing violence at home or online, people unable to obtain legal assistance and young people lured into scam networks with promises of a better future. “Protecting these people must be the measure against which we judge our efforts over the coming week,” she said. “It must be our north star.” She called for laws and institutions capable of keeping pace with changing threats, greater access to justice and legal aid, and technology that serves as “a force for good” rather than an accelerator of harm. And while welcoming the Abu Dhabi Declaration as a starting point, Ms. Juma stressed that its impact would ultimately depend on implementation. A week focused on justice Hosted by the United Arab Emirates, the Congress runs through 1 October under the theme Protecting People and Planet in the Digital Age. Some 119 countries are represented, alongside more than 40 justice ministers and other senior officials, with over 5,100 participants from governments, civil society, academia and the private sector. Plenary meetings, workshops, side events and exhibitions will run throughout the session. Organizers are also billing this as the most youth-inclusive Crime Congress yet. Young people are participating in workshops, contributing to follow-up efforts and taking part in a dedicated Youth Lab and art exhibition, following a Youth Forum held ahead of the Congress on 24 and 25 September. UNODC serves as secretariat of the Congress and will support implementation of the Abu Dhabi Declaration.

Countries adopt global blueprint to tackle fast-evolving crime in digital age

This article is published in association with United Nations. Countries adopted on Saturday a new global blueprint for tackling rapidly evolving forms of crime, as the UN’s largest gathering on crime prevention and criminal justice opened in Abu Dhabi with a call for stronger international cooperation. The Abu Dhabi Declaration was adopted by acclamation at the […]
United Nations President Mahmoud Abbas of the State of Palestine addresses the General Debate of the UN General Assembly’s 81st session.

Palestinian existence under threat, Abbas tells UN, warning of ‘another Nakba’

This article is published in association with United Nations. Israeli policies now threaten “the very life and existence of the Palestinian people on their homeland”, Palestinian President Mahmoud Abbas told the UN General Assembly on Thursday, urging the world not to allow “another Nakba”.  Mr. Abbas addressed the Assembly’s annual debate via pre-recorded video after his […]
© UNICEF/Oleksii Filippov A rescue worker stands outside a residential building in Kyiv’s Solomianskyi district that was severely damaged during a massive overnight attack on the city.

World News in Brief: ‘New intensity’ to Russian attacks on Ukraine, Yemen, Gaza and Colombia updates

This article is published in association with United Nations. Russian armed forces have carried out repeated attacks across Ukraine over the past several days, killing and injuring civilians and damaging homes, hospitals, shops and workplaces, UN human rights monitors said on Thursday. The attacks have involved ballistic and cruise missiles, drones and guided aerial bombs. Between […]
UN Photo/Loey Felipe President Volodymyr Zelenskyy of Ukraine addresses the General Debate of the UN General Assembly’s 81st session.

Zelenskyy urges stronger pressure on Russia, warns war’s impact is spreading beyond Ukraine

This article is published in association with United Nations. Ukrainian President Volodymyr Zelenskyy on Wednesday called for intensified pressure on Russia to end its war against Ukraine, arguing that Moscow continues to incur massive losses while prolonging a conflict whose consequences are increasingly being felt far beyond the battlefield. Addressing the UN General Assembly’s annual debate, […]
UN Photo/Loey Felipe President Donald Trump of the United States addresses the General Debate of the UN General Assembly’s 81st session.

Trump defends military action against Iran, Venezuela, and calls for rebrand of AI

This article is published in association with United Nations. US President Donald Trump used his address to the UN General Assembly on Tuesday to defend recent military action against Iran, urging countries to maintain economic pressure on Tehran – and declaring that he now faces a choice between making a deal, or taking far more drastic […]
© UNICEF/Oleksii Filippov An injured girl climbs the partially collapsed stairwell of a building in Boryspil, Ukraine, following a missile strike.

‘Nowhere is safe’: UN experts detail Ukraine war’s toll and Russia’s reach beyond its borders

This article is published in association with United Nations. UN Human Rights Council-appointed experts on Monday laid out a grim picture of the human cost of Russia’s invasion of Ukraine, with a spotlight on civilians facing a third wartime winter as well as the intimidation of Russians who have fled abroad. The Independent International Commission of Inquiry […]
© UNICEF/Robic Upadhayay Aid workers transport supplies past a flood-damaged house in Nepal.

Nepal floods: ‘Apocalyptic’ destruction signals wider climate threat across Himalayas

This article is published in association with United Nations. The catastrophic flooding that swept away entire villages in northern Nepal could occur again in the country or elsewhere in the Himalayas due to climate change. The warning comes from Sara Netzer, regional director with UN field operations office UNOPS, which provides infrastructure, procurement and project management […]
This article is published in association with United Nations.

World News in Brief: Winter aid for Gaza, West Bank; Haiti food production; migrant deaths at sea; human rights funding

The UN Children’s Fund (UNICEF) is seeking to raise $97.5 million to protect 540,000 children and their families in Gaza and the West Bank from harsh winter conditions in the coming months. Nearly 84 per cent of Gaza’s population – more than 1.76 million people – live in overcrowded displacement sites or damaged shelters, leaving […]
© UNRWA Search-and-rescue operations continue following the collapse of a war-damaged building in Gaza city.

Gaza: At least 20 killed in deadly building collapse, search for survivors continues

This article is published in association with United Nations. Search and rescue operations continued in Gaza City on Wednesday following the collapse of a bombed-out building that killed at least 20 people, according to reports. The incident has highlighted the precarious situation of displaced Palestinians across the Gaza Strip who shelter wherever they can, including in […]
UN News/Nargiz Shekinskaya The UN HQ (Secretariat) building in Manhattan.

The world comes to New York: What’s at stake at UN General Assembly high-level week

This article is published in association with United Nations. Each September, New York becomes the centre of global diplomacy as presidents, prime ministers, ministers and diplomats from around the world gather at United Nations Headquarters. At a time of mounting geopolitical tensions and overlapping global crises, leaders will tackle a packed agenda that includes conflicts and […]

Six UN staff killed in Gaza school strike; Lebanon violations mount

This article is published in association with United Nations. Israeli strikes killed six UN workers and civilians at a school sheltering displaced families in Gaza as needs grow, according to the UN agency for Palestine refugees, UNRWA. At least 220 agency staff have been killed in Gaza since the Hamas-Israel war began in October 2023. UNRWA Acting […]
This article is published in association with United Nations.

‘Where do we go?’: How Israel’s ‘yellow line’ is closing in on Palestinians

This article is published in association with United Nations. Ola Ishtiwi sits with her children in front of the remains of her home in the Al-Tuffah neighbourhood in eastern Gaza City, a few metres away from a series of painted cement blocks Israel has placed to mark what has become known as the “yellow line”. Initially set up following the announcement of the Israel-Hamas ceasefire […]
© UNDP/Oleksandr Ratushniak A substation in Ukraine damaged during ongoing strikes in the war with Russia.

Ukraine: Drone attacks on Chornobyl are ‘gambling with the safety of millions of people’

This article is published in association with United Nations. A drone strike on the protective structure at the Chornobyl Nuclear Power Plant could have endangered the safety of millions of people, UN Development Programme (UNDP) Administrator Alexander De Croo told reporters via video link from Kyiv on Thursday. He is visiting Ukraine, with his mission focused […]
© UNHCR/Dar Al Mussawir Smoke rises above residential neighborhoods in Tyre, southern Lebanon, following an Israeli airstrike. (file)

UN chief demands Israeli withdrawal from Lebanon amid Nabatieh escalation

This article is published in association with United Nations. The Secretary-General has condemned mounting civilian casualties in southern Lebanon and called on Israel to withdraw its forces from Lebanese territory, as fighting intensifies in and around Nabatieh. Key points In a statement issued by his Spokesperson, Stéphane Dujarric, the Secretary-General said he was “deeply concerned” by […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com