Czech plans to support the creation of a network of refuelling and recharging stations for low emission vehicles, have been approved by the European Commission (EC) as being in line with EU State aid rules.

“The Czech scheme is yet another good example of how Member States can contribute to the fight against global warming,” said Competition Policy commissioner, Margarethe Vestager.

“The scheme will promote alternative fuels, reduce harmful car emissions and will encourage consumers and businesses to use greener transportation, without distorting competition “.

The scheme provides support of EUR44.5m (US$53m) for six years for the construction of publicly accessible recharging and refuelling stations for vehicles running on alternative fuels such as electricity, compressed natural gas, liquefied natural gas and hydrogen.

The infrastructure network will cover the entire country. Companies already active in the alternative fuels sector can apply for the support, which will be awarded in four separate calls for tender.

The aid measure was assessed by the Commission through the Treaty on the Functioning of the European Union, which allows Member States to support the development of certain economic activities, in this case improving energy efficiency and reducing CO2 emissions.

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The Commission considered the public support appropriate as the Czech Republic demonstrated aid was necessary to incentivise operators to develop the national network at the required pace and density.

The measure is also in line with the European Strategy for low-emission mobility, particularly in terms of speeding up the deployment of low-emission alternative energy for transport and contributing to the decarbonisation agenda.

The Commission concluded the scheme’s contribution to EU environmental goals “clearly outweighs any potential distortion of competition” brought about by the public financing and approved the Czech plans through EU State aid rules.