State aid and waste management

Transcription

1 State aid and waste management C H R I S TO S P E O L I D I S S TAT E A I D E X P E R T / C P E O L I D I S C O N S U LT I N G * All views expressed are personal and do not commit the European Commission

2 What are the basic questions in a State Aid assessment? 2

3 3 1. Is it State Aid? 2. What is the aid amount? (de minimis) 3. Is it Block exempted? (GBER), (SGEI decision) 4. Notification (EEAG), SGEI Framework

4 Where can State aid be identified in waste management? Financing of construction, upgrade, extension, operation and use of infrastructure 4

5 What are the main principles in Waste management? Waste hierarchy principle Polluter pays principle 5

6 How many instances do we distinguish when assessing State aid in Waste management projects? A) SA can be excluded. B) There is no need to notify for SA clearance. C) Notification for SA clearance is necessary. 6

7 No existence of State Aid in waste management How would you establish the no existence of aid? What is the most common way? 7

8 A) In which Instances can existence of State aid be excluded? What is stated in the Analytical Grid: Legal Monopoly? No economic activity? No effect on trade/ purely local impact? No economic advantage at the level of the owner/developer? the operator/concessionaire? the users? 8

9 I) Legal Monopoly Is waste management provided by in house providers a legal monopoly? a. legal monopoly (established in compliance with EU law, and in particular with the Treaty rules on competition); b. the legal monopoly excludes competition on and for the market, c. the service is not in competition with other services; and d. if the operator of the infrastructure is active in another (geographical or product) market that is open to competition, cross-subsidization has to be excluded. EXAMPLE: Extended Producer Responsibility Schemes (EPR) in some Member States qualify as Legal monopolies 9

10 II) Economic Activity Can you identify any activity in the waste chain that is not commercially exploited? All aspects of the waste management infrastructure which is commercially exploited constitute an economic activity and is therefore in principle subject to the SA rules. 10

11 III) Effect on Trade between MS? Can waste management projects and services have purely local impact? Yes, it usually refers to services provided within geographical boundaries However, What kind of companies are active in the waste management sector? Multinational enterprises (global players) are sometimes engaged in such direct services. 11

12 IV) When can we exclude an economic advantage at the level of the owner/developer? The State acts under the same terms and conditions as a private investor in a comparable situation - Market Economy Operator Principle (MEOP) This can be assessed on the basis of: (i) (ii) significant pari passu investments of private operators, i.e. on the same terms and conditions as the public authorities who are in a comparable situation; and/or a (ex-ante) sound business plan (validated by external experts) in line with the normal market return on similar projects 12

13 V) When can we exclude an economic advantage at the level of the operator/concessionaire? Selection of the operator/concessionaire through a tender or fees are otherwise in compliance with the Market Economy Operator Principle (MEOP) The operation of the waste management infrastructure is entrusted as a SGEI in line with Altmark criteria SGEI de minimis Regulation (no more than EUR 500,000 over 3 years period). 13

14 No economic advantage in SGEI? Altmark criteria I. Entrustment Act; II. Parameters for calculating compensation - objective and transparent; III. IV. No overcompensation; and Open / restricted public procurement procedure or compensation is based on costs of a well run undertaking 14

15 VI) When can we exclude an economic advantage at the level of the users? a) waste management infrastructure is not dedicated for the use by a specific user b) all users enjoy equal and nondiscriminatory access to the infrastructure c) the infrastructure pricing policy for users is established on market terms 15

16 No need to notify State Aid in waste management How would you design a SA measure exempted from notification? What is the most common way? 16

17 B) In which instances there is no need to notify for State aid clearance? - Specific GBER provisions - SGEI Decision 17

18 What are the thresholds & provisions for exemption from notification? SGEI DECISION definition and entrustment parameters of compensation established ex ante in a transparent manner amount of compensation not exceeding the costs for the provision of SGEI reasonable profit claw back mechanism ensuring the absence of overcompensation. Up to EUR 15 million per year GBER Art. 14 Regional investment aid (max. aid intensities established in the regional aid map) Art. 36 Investment aid enabling undertakings to go beyond Union standards for environment protection (up to EUR 15 million) Art. 47 Waste recycling and re-utilisation (up to EUR 15 million per undertaking per project) Art. 56 Investment aid for local infrastructure (up to EUR 10 million, if total costs do not exceed EUR 20 million) 18

19 How to design a notificationexempted SA measure for waste management? Aid amount per year? Aid intensity? SGEI? Can it fall under GBER? Is it in an assisted area? Regional Aid? Does the investment go beyond state of the art? Art 47 of GBER Does the investment go beyond or in the absence of EU standards? Art.36 of GBER Is the investment a local infrastructure not covered by other provisions of GBER? Art

20 Can Aid for Waste to Energy be exempted from notification? Waste hierarchy principle applies! Yes, if it is in line with GBER: Article 40 Investment aid for highefficiency cogeneration Article 41 Investment aid for the promotion of energy from renewable sources Article 42 Operating aid for the promotion of electricity from renewable source Article 43 Operating aid for the promotion of energy from renewable sources in small scale installations 20

21 How would you design a SA measure that needs to be notified? Necessity to notify State Aid in waste management What is the most common way? 21

22 C) Which legal base is suitable in instances where notifying for State aid clearance is necessary? ENERGY AND ENVIRONMENTAL GUIDELINES (EEAG) 2014 REGIONAL AID GUIDELINES (RAG) SGEI Framework Aid for going beyond or in the absence of Union standards (Section 3.2) Aid for waste management (Section 3.5) For assisted areas as aid for an initial investment on the basis of the Regional Aid Guidelines. Aid will be assessed on the basis of the compatibility conditions set out in the RAG. Conditions: entrustment of a clearly defined and genuine SGEI; compliance with transparency Directive 2006/111/EC; compliance with EU public procurement rules; absence of discrimination; a mechanism to avoid any overcompensation; and transparency. 22

23 How to design a notification for a State Aid measure for waste management? Aid amount/year? Aid intensity? Is it in an assisted area? Regional Aid? Does the investment go beyond state of the art? Part 3.5 of EEAG. Does the investment go beyond Union standards or in the absence of union standards? Part 3.2 of EEAG. SGEI Framework? 23 Αυτή η φωτογραφία από Άγνωστος συντάκτης με άδεια χρήσης CC BY-SA

24 Which legal base is suitable for to notify aid for Waste to Energy projects? Waste hierarchy principle applies! Compatible aid under high efficiency cogeneration (part 3.4 of EEAG) or support to renewable energy sources (part 3.3 of the EEAG) for the renewable part (biodegradable part of the waste) Does it need to be notified? Yes, unless the measure falls under an already approved scheme for high efficiency cogeneration or for support of biomass under a renewable energy source scheme. 24

25 Source: 25

26 How is SGEI defined? Services of general interest are services that public authorities of the EU member countries classify as being of general interest and, therefore, subject to specific public service obligations. They can be provided either by the state or by the private sector. Examples of services of general interest include: public transport, postal services, and healthcare. 26

27 Is it SGEI? Can collection of municipal waste be an SGEI? Can Sorting of municipal waste be an SGEI? Can production of energy from waste be an SGEI? 27

28 State Aid and Waste management How many notifications do you believe are made for waste management projects? How many complaints do you believe are filled on waste management? 28

29 Lucrative, established markets exist What are the main SA Issues in Waste Management? Aid beneficiaries often provide a service of general economic interest (SGEI) and are performing other activities. How can the risk of cross- subsidization of other economic activities of the beneficiaries be avoided? Competitive, transparent, nondiscriminatory and unconditional tender procedure. Separate accounts How can overcompensation be avoided? Scrutinizing the concession arrangements on a continuing basis. 29

30 What are the principles of the Circular Economy? Maintaining the value of products, materials and resources in the economy for as long as possible Minimising waste generation Boosting our competitiveness with new business opportunities and innovative products and services Bringing economic, social and environmental gains 30

31 Effective use of national resources to fund Circular Economy initiatives. How can State Aid control support the Circular Economy? Avoidance of cross-subsidization especially if undertakings are executing economic activities together with SGEI. Avoid unnecessary subsidization of waste flows that have a value (i.e. paper, aluminium, separated plastic). Divert waste flows from landfills and incinerators to recycling and re-use. 31

32 Questions? Contact: Christos Peolidis Tel: Tel: