The aid will help cover exceptional costs arising from the closure of the four uncompetitive coal mines of Lonea, Lupeni, Livezeni and Vulcan in the Jiu Valley. Image by ArturNyk via iStock
The European Commission has approved a Romanian aid of EUR 790 million ($832.6 million) to help cover exceptional costs arising from the closure of the four uncompetitive coal mines of Lonea, Lupeni, Livezeni and Vulcan in the Jiu Valley.
The Romanian measure, according to the European Commission, will help Romania phase out coal by 2032 in line with its binding commitment under its National Recovery and Resilience Plan and Territorial Just Transition Plan. The recipient will be Societatea Complexul Energetic Valea Jiului SA, which oversees the four mines and the Paroseni power plant.
The measure covers social costs for workers affected by mine closures and safety and remediation expenses for closing the four mines, including from securing shafts, repairing environmental damage, and land recultivation. The aid applies to eligible costs from October 1, 2023, to December 21, 2032.
An independent consultant will monitor coal extraction, making sure it is limited to volumes strictly necessary for public safety.
"The measure we have approved today will help Romania to carry out the necessary safety and rehabilitation works in order to facilitate the mine closure and ensure that no one is left behind in the green transition. It will also help alleviate the social impact of the closures", said Margrethe Vestager, Executive Vice President in charge of competition policy at the Commission.
The Commission assessed the measure and found it to be compatible with the internal market as the aid does not exceed the exceptional costs, is not related to current production, and arises from the orderly and irrevocable closure of the four mines by 2032 at the latest.
The shutdown of uncompetitive mines is also in line with the goals established by the EU in the European Green Deal, as well as other recent regulatory updates in the fields of energy and the environment, the Commission said.