BRUSSELS, March 16 — The European Commission has adopted new State aid rules aimed at encouraging more sustainable forms of transport for both passengers and freight while updating the EU’s framework for land and multimodal transport.
The new rules consist of the State aid Land and Multimodal Transport Guidelines (LMT Guidelines) and the State aid Transport Block Exemption Regulation (TBER). They will enter into force on March 30, 2026. The block exemption regulation will apply until Dec. 31, 2034, while the guidelines have no fixed end date.
The framework replaces the 2008 guidelines on State aid for railway undertakings and establishes a broader system covering multiple sustainable transport modes while maintaining safeguards to prevent distortions of competition.
Guidelines for Sustainable Land Transport
The LMT Guidelines set out the conditions under which state aid that must be notified to the Commission may be approved as compatible with the EU internal market.
They cover transport modes considered more sustainable than road transport, including rail, inland waterways and certain multimodal transport operations. For multimodal transport to qualify, at least one of the modes used must involve rail, inland waterways or a combination with short sea shipping.
The guidelines clarify the rules for several types of operating and investment aid, such as support for building and upgrading railway service infrastructure and inland waterway facilities, launching new rail or waterway transport services, and compensating public service obligations in the rail freight sector.
They also introduce more flexible rules for aid measures contributing to the EU’s green and digital transitions. These include support to reduce the external environmental costs of transport and measures promoting interoperability between national rail systems to improve safety and efficiency.
In addition, the rules contain safeguards aimed at encouraging the entry and expansion of new operators in sustainable transport markets. They also facilitate access to financing for small and medium-sized enterprises, small mid-cap companies and new market entrants seeking to purchase rolling stock or inland waterway vessels.
Simplified Approval Through Block Exemption
The Transport Block Exemption Regulation complements the guidelines by allowing certain categories of aid in the rail, inland waterways and sustainable multimodal transport sectors to be granted without prior notification to the Commission.
The Commission said the new exemption framework will simplify procedures and enable member states to provide support more quickly where conditions are met. Many aid measures can now be implemented without prior approval from Brussels, reducing administrative burdens while maintaining competition safeguards.
Review of Existing Framework
The updated rules follow a 2019 evaluation of existing EU State aid rules for sustainable land transport, which concluded that earlier railway guidelines had helped encourage a shift toward rail transport and promote interoperability across networks.
However, the review also found that the framework required adjustments to reflect changes in markets, technological developments and evolving EU policy priorities.
As part of the revision process, the Commission published an inception impact assessment in 2021 and later conducted consultations with stakeholders on the draft guidelines and block exemption regulation.
The newly adopted rules are accompanied by an impact assessment outlining their expected scope, content and effects, as well as summarising feedback received during the consultation process.
Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_26_604
