ABSTRACT

This chapter explores the significance of the environmental integration obligation imposed by Article 11 of Treaty on European Union (TFEU) on European State aid law and policy. It argues that the mandatory nature of the environmental integration principle (EIP) has important procedural and substantive implications for the area of State aid law. According to Article 11 TFEU, environmental protection requirements is integrated into the definition and implementation of all Union policies and activities. The EIP is closely linked to the broader commitment to sustainable development in Article 3 of the Treaty on European Union (TEU), which requires the balancing of economic, social and environmental effects of all Union policies aiming at a high level of protection and improvement of the quality of the environment. The chapter concludes by way of illustrating the significant implications of Article 11 TFEU for the nature of environmental aid granted as well as the division of supervisory powers between the Commission and the Member States.