EU Approves Czech Financial Support for Biofuels

EU biofuels
Prague at night. By Zlobr 007 (Own work) [CC BY-SA 4.0 (], via Wikimedia Commons

The European Commission has approved the extension of a Czech scheme benefitting certain biofuels under EU state aid rules, in particular its 2014 Guidelines on State aid for environmental protection and energy.

The Commission concluded that the scheme would further EU energy and environmental objectives without unduly distorting competition in the Single Market. The Czech scheme was originally approved by the Commission in 2008.

The decision approves an extension for the period from 1 July 2015 until 31 December 2020. The scheme provides for excise duty reductions or refunds in favour of pure or highly-concentrated biofuel placed on the Czech market, provided that it meets the required sustainability criteria.

The Commission found that the measure would contribute to reaching the Czech Republic’s 2020 targets for renewable energy and for biofuels in transport, while limiting potential distortions of competition. In particular, the Commission verified that aid is limited to sustainable biofuels, provides an incentive to use more environmentally friendly fuel and is limited to the minimum necessary to compensate for the additional costs of biofuels.

The non-confidential version of the decision will be published in the State aid register on the competition website under case number SA.39654 once eventual confidentiality issues have been resolved.

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This post was prepared by Solar Thermal Magazine staff.

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