The European Commission has adopted new guidelines on state aid for land and multimodal transport (the LMT Guidelines) and the Transport Block Exemption Regulation (TBER).
These instruments support more sustainable modes of transport, for both passengers and freight, and update the EU framework on state aid for land and multimodal transport. They will enter into force on March 30, 2026, and the TBER will remain applicable until December 31, 2034. The new State aid guidelines have no expiration date.
The new rules replace the 2008 guidelines on State aid to railway undertakings. The LMT Guidelines and TBER establish a coherent state aid framework covering a wide range of sustainable transport modes and support measures, while maintaining safeguards to prevent undue distortions of competition.
“By publishing these two regulations, we are equipping Member States with a modern and coherent state aid framework that supports sustainable and interoperable land transport while safeguarding fair competition. “These rules simplify procedures and facilitate public support for sustainable transport solutions, thereby contributing to more efficient, accessible, and environmentally friendly European land transport,” said Teresa Ribera, Executive Vice-President for a Clean, Fair, and Competitive Transition.
State Aid Guidelines Focus on Rail
The new provisions cover all modes of land transport that are more sustainable than road transport. These include rail transport, inland waterways, and sustainable multimodal transport. In the case of multimodal transport, at least one of the modes used must be rail or inland waterways, or combine land transport with short-sea shipping.
Another provision clarifies the possibilities for various operational and investment aid measures, such as support for the construction and modernization of infrastructure for rail and inland waterway services, aid for the launch of new commercial connections by rail and inland waterways, and clarifies the possibilities for aid in the form of reimbursement for the fulfillment of public service obligations in the rail freight transport sector.
Furthermore, the new State Aid Guidelines introduce more flexible rules for aid measures that directly contribute to the green and digital transitions. This includes aid aimed at reducing the external costs of transport, as well as aid promoting interoperability, such as support for safer and more efficient operation between national rail systems. In this context, these provisions are designed to support the shift from road transport to more sustainable modes of transport, while ensuring that the aid remains targeted and proportionate.
In addition, safeguards are introduced to support the entry and growth of new operators in sustainable land transport markets. They facilitate access to financing for SMEs, small and medium-sized enterprises (SMEs), and new entrants for the purchase of rolling stock and inland waterway vessels, while maintaining effective competition.
Rapid granting of state aid, simplified by the TBER
The Transport Block Exemption Regulation (TBER) complements the Guidelines by exempting certain categories of aid in the rail, inland waterway, and sustainable multimodal transport sectors from the requirement of prior notification and approval by the European Commission.
This new exemption framework represents a major simplification, allowing Member States to grant aid quickly when the conditions are met. As a result, Member States can now implement many measures without the need for prior approval from the Commission. This aligns with the Commission’s approach, which aims to deliver more and faster while reducing excessive administrative burdens. The categories of aid and the rules contained in the TBER largely reflect the provisions of the Guidelines on Land and Multimodal Transport.
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