Press Release: State Aid: Commission authorises transitional free allocation of greenhouse gas emission allowances for modernisation of Czech and Hungarian electricity sector

The European Commission has concluded that provisions of Hungary's and the Czech Republic's plans for the modernisation of their electricity sector, which involve the allocation of carbon emission trading allowances free of charge, are in line with EU state aid rules. The Commission found that the funds thus granted, amounting to €1.878 million for the Czech Republic and €56 million for Hungary, will be used to modernise production infrastructure, diversify the energy mix or construct new installations. This will contribute to liberalising energy markets, reducing greenhouse gas emissions and increasing the security of supply, in line with EU objectives.