The remaining seven countries have coal production that is covered in part or fully by the CoalRegulation. The countries receiving state aid for coal are: Germany, Hungary, Poland, Romania,Slovakia, Slovenia, and Spain. Slovenia provides state aid to closed mines, while the remaining sixprovide funds for active mines. Hard coal production in Romania, Hungary, Slovakia and Bulgariawas reported to amount to some 4–6 Mt/y. Lignite production however was 20–23 Mt/y almost all ofwhich was not under the state aid regulations. This leaves Germany and Spain as the major producersof subsidised hard coal in the group of seven state aid coal industries. In those countries where stateaid is granted, the aid is split into three broad categories:Aid for accessing coal reserves – ongoing aid for operating mines with ongoing activity (Art 5-3:applicable to Germany, Hungary, Romania and Spain), and aid for initial investment (Art 5-2:applicable to Poland and Slovakia); the level of investment throughout each EU member statevaries widely, and so a direct comparison is not straightforward. However, when calculated on aper tonne basis, it provides a more useful comparison for determining the amount of publiclyfunded aid that is provided.Aid for reducing mining activity – operational aid for those planned for closure (Article 4).Aid to cover exceptional costs – to cover the cost of restructuring and decommissioning, as wellas inherited social and environmental liabilities associated with mine closure (Article 7). Eachmining corporation may have a combination of state aid packages to cater for a number of mines,some closing and others maintaining operations.Table 6 and Figure 17 show the major producers in the EU that receive state aid for hard coalproduction. In many of these countries, lignite is produced without the need for state aid; howeverclearly hard coal production is assisted to varying degrees. In 2007, some 99 Mtce of coal wasproduced in these seven EU member states under the regulation that qualifies for state aid. The largestproducer was Poland, which accounted for almost 70% of all the coal produced with state aid, in oneform or another. However, Poland’s state aid comes mainly under Article 7, which covers exceptionalcosts for restructuring the industry.
40IEA CLEAN COAL CENTREState aid in EuropeTable 5 Coal priduction falling under the scope of the EU Coal Regulation(Rademaekersand others, 2008)Coal-production,Member StateYearProduction of coalfalling underregulation, tceamount of subsidised coal, tcenotcaptured bythe Regulation,tceBulgariahard coal20071,278,900Competitive. Only aid under article 70ortho-lignite2007009,750,800CzechRepublichard coal200712,142,000Competitive.No more subsidies since 19930ortho-lignite20070018,734,000Germanyhard coal200717,600,00017,600,0000ortho-lignite20070068,552,000Hungaryhard coal2007935,550935,5500Italyhard coal2007312,000Aid from region to capital.