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EUROPEAN COMMISSION OPENS IN-DEPTH INVESTIGATION INTO STATE AID FOR BIOMETHANE

Munich, March 5, 2024 In response to the annulment by the EU General Court (Case T-626/20 – Landwärme v Commission), the European Commission has officially opened an in-depth investigation into Sweden’s state aid scheme for biomethane. Legal action by Landwärme, a leading European biomethane trader, triggered this investigation, exposing concerns of double subsidization practices that disrupt fair market conditions and hinder the goals of the European Green Deal.The legal proceedings originated from the Swedish state aid scheme allowing recipients to claim subsidies alongside aid from

EU GENERAL COURT ANNULS BIOMETHANE SUBSIDY SCHEME AND REQUESTS REVIEW OF MARKET EFFECT OF CROSS-BORDER CUMULATION OF SUBSIDIES

December 22, 2022 Success for fair competition on the European biomethane market: The EU General Court annuls the decisions of the EU Commission on the Swedish biomethane support scheme, due to non-consideration of a potential distorting effect on competition.The EU General Court ruled: The decisions of the EU Commission of 29 June 2020 on Swedish biomethane subsidy scheme do not comply with European law. The EU Commission failed to evaluate and consider the effect resulting from a cumulation of the Swedish subsidy with subsidies granted by other EU Member States (Case T-626/20 –

LANDWÄRME TAKES LEGAL ACTION ON STATE AID FOR BIOMETHANE

Landwärme GmbH, a leading German biomethane trader, is taking legal action against the European Commission’s approval of a Swedish state aid scheme for biomethane (Case T-626/20 – Landwärme v Commission). The combined effect of the Swedish tax relief for consumption and other EU member states’ such as Denmark’s production support, distorting the European biomethane market, is at the heart of the legal action.Sweden has two parallel support schemes for biomethane: one for heating and one for fuel purposes. These were renewed in early 2020 and approved by the Commission on June 29, 2020. “Our

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