The
article analyses the EU and European Economic Area (EEA) Member States’ leeway
under the state aid rules in Article 107 Treaty on the Functioning of the
European Union (TFEU) and Article 61 EEA Agreement regarding the use of tax
incentives to promote the green transition for which they currently have a more
significant amount of discretion than before for doing so. There is an increased
focus on the environment in the EU and the EEA, and the analysis proves that
this would most likely entail that some tax incentives that would have been
considered as unlawful under Article 107 TFEU/Article 61 EEA Agreement only a
few years ago would currently be considered as compatible with the state aid
rules.