The Commission has adopted new state aid rules to encourage the use of more sustainable modes of transport

The European Commission on march 16 th has today adopted the Guidelines on State aid in the land and multimodal transport sector (TTM Guidelines) and the Transport Block Exemption Regulation (TTBER). These instruments support more sustainable modes of transport, for both passengers and goods, and update the EU’s State aid framework for land and multimodal transport. They will enter into force on 30 March 2026. The RECT will remain in force until 31 December 2034. There is no expiry date for the TTM Guidelines.

The new rules replacethe2008 Guidelines on State aid to railway undertakings. The TTM Guidelines and the RECT establish acoherent State aid frame work coveringa wide range of sustainable transport modes and aid, whilst maintaining safeguards to prevent undue distortions of competition.

Guidelines on State aid in the inland and multimodal transport sector (TTM Guidelines)

The TTM Guidelines set out the conditions under which State aid may be declared compatible with the internal market; such aid must be notified to the Commission for approval before it can be granted. The new Guidelines include the following provisions:

• They coverall modes of inland transport that are more sustainable than road transport, suchasrail, inland waterway transport and sustainable multimodal transport. Withregardto multimodal transport, at least one of the modes of transport used must be rail or inland waterways, or combine inland transport with short sea shipping.
• They clarify the possibilities for grantingvarious operating and investment aid, such as aid for theconstruction and improvement of rail and inland waterway service facilities, and aidforlaunching new commercial rail and inland waterway connections. They also clarify the possibilities for aid in the formofreimbursement for the fulfilment of public service obligations in the rail freight sector.
• They introduce more flexible rules applicable to aid that directly contributes to the green and digital transitions, including aid aimed atreducing the external costs of transport and aid promoting interoperability, such as aid for safer and more efficient operation of all national rail systems. These provisions are designed to support the shift from road transport towards more sustainable modes of transport, whilst ensuring that aid remains targeted and proportionate.
• They also introduce safeguards to encourage the entry and expansion of new operators in sustainable land transport markets. They facilitate access for SMEs, small mid-cap companies and new entrants to financing for thepurchase of rolling stock and inland waterway vessels, whilst preserving effective competition.

Transport Block Exemption Regulation (TBER)

TheRECTcomplementsthe Guidelines by exempting certain categories of aid inthe rail, inland waterway and sustainable multimodal transport sectors from there quirement for prior notification and approval by the Commission.

This new exemption framework represents a significant simplification that makes it easier for Member States to grant aid swiftly where the conditions are met. As a result, Member States will now be able to grant a wide range of aid without the need for prior Commission approval, which is in line with the Commission’s approach of focusing on delivering more results faster,whilstreducing unnecessary administrative burdens. The categories of aid and the rules of the RECT largely reflect the TTM Guidelines.

Background

The adoption of the TTM Guidelines and the RECT follows the conclusions of the 2019 fitness check on the existing rules applicable to the sustainable land transport sector. This check highlighted that the Railway Guidelines made a significant contribution to fostering a modal shift towards rail and promoting interoperability. At the same time, the assessment indicated that adjustments were needed to reflect technological and market developments and the EU’s current strategic priorities.

In October 2021, the Commission published an initial impact assessment on the revision of the Railway Guidelines and a roadmap for a new block exemption regulation for rail transport, inland waterway transport and multimodal transport. In December 2022, the Council adopted an enabling regulation authorising the Commission to adopt this new block exemption regulation. In March 2024, the Commission published a call for data on the RECT, followed by a public consultation inviting all interested parties to comment on the draft TTM Guidelines and the draft RECT. All these assessment measures have been incorporated into the Guidelines and the Regulation adopted today.

The revised rules are accompanied by an impact assessment setting out the scope, content and likely impact of the new rules and summarising the information gathered through the consultation activities organised by the Commission.

Further information: European Commission