EU State aid rules for land and multimodal transport

The European Commission has initiated a public consultation to gather feedback on its proposed rules for land and multimodal transport, which will replace the existing Guidelines on State aid for railway undertakings (‘Railway Guidelines’). The new rules include the Land and Multimodal Transport Guidelines (‘LMT Guidelines’) and the Transport Block-Exemption Regulation (‘TBER’). Interested parties can submit their comments until 20 September 2024. These guidelines aim to update and expand the scope of State aid regulations, ensuring they cover sustainable land transport modes beyond just railways, to include inland waterways and multimodal transport.

The proposed LMT Guidelines seek to replace the Railway Guidelines by broadening their coverage to all land transport modes that are more environmentally friendly than road-only transport. This change will incorporate aid categories such as the construction of multimodal facilities, launching new commercial connections, and fulfilling public service obligations in the rail freight sector. Additionally, the guidelines introduce more flexible rules for aid contributing to green and digital transitions and support new operators in accessing finance for sustainable transport options.

The new TBER aims to simplify State aid procedures by exempting certain categories of aid for sustainable transport from the requirement of prior notification and approval by the Commission, provided they meet specific conditions. This exemption is designed to reduce administrative burdens and accelerate the provision of aid for sustainable transport, thus promoting quicker and more efficient implementation of supportive measures by Member States. The TBER will particularly focus on aid that supports the coordination of transport and has a limited potential for distorting competition.

To ensure comprehensive feedback, the draft TBER will be discussed in meetings between the Commission and Member States, along with a multilateral meeting on the LMT Guidelines. These consultations will allow Member States and other stakeholders to provide their input before the adoption of the revised guidelines and the new TBER, scheduled for the end of 2025. These proposals follow the Fitness Check's recommendations, which highlighted the need for updates to align with market developments and EU strategic priorities, including the European Green Deal and the Sustainable and Smart Mobility Strategy.