EU’s Renewable Energy Target and Fossil Fuel Subsidies - Exercise of the Commissions State Aid Powers in Response to Insufficient Progress

Abstract

The EU has set the target that 42.5% of energy consumption shall derive from renewable energy. Regulation 2018/1999 governs the Unions endeavors thereof and, when a member state fails to sufficiently contribute with its share of renewable energy, the European Commission shall exercise its powers at Union level. Vast levels of state aid granted to fossil fuel production and consumption in the Union constitutes a major antagonist to the renewable energy transition. This thesis explores legal sources, literature, and reports on the relationship between state aid and the Commissions exercise of powers at Union level. The thesis intends to find legal solutions capable to address harmful state aid and strengthen the Commissions responses to insufficient renewable energy progress. The main finding is that state aid law can be utilized to address state aid to fossil fuels and that there is great potential in interlinking the legal areas.