Eurogas supports the Commission’s investigation on state aid for biomethane as a means to guarantee fair competition and trade of renewable gases.
On 5 March, the European Commission published in the Official Journal a request for feedback on its investigation of the compliance of the Swedish State with the Treaty of the Functioning of the European Union. This investigation concerns the Swedish schemes for biogas for motor fuels and the Swedish tax exemption for non-food-based biogas and bio-propane in heat generation.
Following the examination of these schemes, the Commission now seeks clarification and solicitates comments, notably regarding the proportionality of the aid. In particular, the Commission is investigating potential overcompensation due to the cumulation of the aid of these schemes with aid provided by other Member States schemes.
Eurogas believes that it is necessary to avoid undesirable effects on competition and trade of renewable gases that could be caused by State aid. For this purpose, it is essential to avoid any sort of overcompensation due to the cumulation of multiple schemes’ aids. This approach is needed to establish a level playing field amongst producers from all EU Member States.
In the REPowerEU Communication, the European Union has voiced its ambitions to increase the domestic production of biomethane to 35 bcm. For this purpose, it is necessary to establish a liquid EU-wide market with cross-border trading.
Eurogas fully supports Member States’ initiatives to incentivise the production and/or consumption of biomethane and more generally renewable and low carbon gases. But such support should not lead to market distortion.
Eurogas underlines the crucial role of Member States in achieving increased volumes of biomethane production and consumption in the EU. It is the responsibility of all Member States to cooperate and share information in the spirit of sincere cooperation aimed by all EU regulations, notably in the Renewable Energy Directive
Read our position paper here for more details: [PDF]
