The European Green Deal, a set of EU policy initiatives with the overarching aim of making Europe climate neutral by 2050, requires significant green investments mobilizing public funds. The Commission confirms that the State aid policy has an important role to play in supporting the EU in the green transition process and in achieving the European Green Deal goals. However, for this to be possible, the EU State aid rules have to be well-designed and fully aligned with these targets. This paper aims to answer the question whether the European Green Deal actually gives a long-awaited green light for more sustainable and green aid and, at the same time, whether the EU State aid regime allows the achievement of the ambitious European Green Deal goals. To this end, the author analyses the existing State aid legal framework and assesses the recent review of State aid rules following the adoption of the European Green Deal.
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