EU Opens the Door to Environmental Justice in State Aid Decisions

On 14 May 2025, the European Commission adopted long-awaited amendments to its State aid rules, marking a major step forward for public access to environmental justice in the EU. For the first time, non-governmental organisations (NGOs) will have the ability to request a review of certain State aid decisions on the grounds that they may contravene EU environmental law. This change is a direct response to the findings of the Aarhus Convention Compliance Committee (ACCC) which concluded in 2021 that the EU lacked an effective mechanism for the public to challenge such decisions.

Why This Matters

Under EU law, State aid granted by Member States must generally be approved by the Commission. However, there has long been a gap in public oversight, particularly when it comes to the environmental implications of these decisions. While EU citizens and organisations have legal standing in many areas of EU law, State aid decisions have largely been shielded from external challenge – even in cases where environmental harm is at stake. The ACCC’s findings highlighted this inconsistency as a breach of the Aarhus Convention, which guarantees public access to justice in environmental matters.

The New Review Mechanism

With this, the European Commission is introducing a structured review process, allowing qualified NGOs to request a reassessment of final State aid decisions that may be inconsistent with EU environmental law.

Key features of the new mechanism include:

• Eligibility criteria: NGOs must be independent, non-profit, and actively engaged in environmental protection, with a proven track record in the field.
• Scope of review: Only final decisions concluding formal investigation procedures under Article 108(2) TFEU can be reviewed. This includes “positive” and “conditional” decisions—those that authorise aid as compatible with the internal market—but excludes aid falling under Articles 107(2) and 107(3)(b) TFEU (e.g., aid for natural disasters or to address serious economic disturbances).
• Substantive test: The review request must demonstrate that the aided activity—or an inseparable aspect of it—is in breach of a specific rule of EU environmental law.
• Time limits: Requests must be submitted within 8 weeks of the decision’s publication in the Official Journal. The Commission then has 16 weeks to respond, extendable to 22 weeks in complex cases. Both requests and responses will be published on a dedicated Commission website.
• Judicial review: Applicants may challenge the Commission’s reply before the Court of Justice of the EU.

Additional Changes

The revision also updates the State aid Implementing Regulation (EC) No 794/2004 and the State aid Best Practices Code (BPC) to align them with current Commission practice and case law from the Court of Justice of the EU. Notably, Member States will now be required to confirm in their notification forms that the aid measure complies with EU environmental law.

Looking Ahead

The revised rules will come into effect two months after their publication in the Official Journal of the European Union. From that point, NGOs will be able to submit review requests for final decisions authorising notified aid. The same applies to non-notified aid decisions, provided the formal investigation was initiated after the rules’ publication.

Further guidance on how to determine whether an aspect of a State aid measure is ”indissolubly linked” to an environmental breach—a key condition for a valid review—will be issued by the Commission in Q4 2025.

Conclusion

This reform represents a significant advance in environmental governance within the EU. By creating a pathway for NGOs to seek accountability in State aid decisions, the Commission is reinforcing the principle that environmental law cannot be side-lined, this even in complex areas like State aid. The move is also a clear signal of the EU’s commitment to complying with its international obligations under the Aarhus Convention and to increasing transparency and public participation in decision-making processes.

For further details, the Commission has published a comprehensive Staff Working Document summarising the scope and likely impacts of the changes, as well as input received from a wide range of stakeholders during the public consultation phase.