Press Release: State Aid: Commission authorises transitional free allocation of greenhouse gas emission allowances for the modernisation of electricity generation installations in Cyprus and Estonia

The European Commission has concluded that certain provisions of Cyprus's and Estonia's development plans for the electricity sector allocating carbon emission trading allowances free of charge are in line with EU state aid rules.

The Commission found that the funds (€371 million for Estonia and €194 million for Cyprus) granted will be used to modernise the production infrastructure, diversify the energy mix and to build new installations to replace capacity. This will contribute to liberalising energy markets, reducing greenhouse gas emissions and increasing the security of supply, in line with EU objectives.