Coal Mine Closures: EUR 790 Million Aid for uncompetitive mines in Romania greenlighted
Today, the European Commission has approved a EUR 790 million (approximately RON 3.9 billion) aid measure to cover exceptional costs arising from the closure of the four uncompetitive coal mines of Lonea, Lupeni, Livezeni and Vulcan.
The measure supports Romania’s commitment to phase out coal by 2032, aligning with its obligations under the national Recovery and Resilience Plan and the Territorial Just Transition Plan. Funding will be provided to Societatea Complexul Energetic Valea Jiului S.A., which oversees four mines and the Paroseni power plant. The objective of the aid is to facilitate the closure of mining operations.
The measure covers (i) social costs for workers who have lost, or will lose, their jobs due to the closure of the mines, and (ii) costs related to the safety and remediation works necessary for the closure of the four mines, in particular to secure mine shafts, repair damage to the environment caused by mining and re-cultivate land after the closure of the four mines. The aid covers eligible costs incurred from 1 October 2023 to 31 December 2032
The Commission evaluated the measure under Article 4 of Council Decision 2010/787/EU on State aid for the closure of uncompetitive coal mines. It concluded that the measure is compatible with the internal market, as the aid is limited to covering exceptional costs unrelated to current production, stemming from the orderly and final closure of the four mines by 2032.
For further information, see the PR of the Commission.