The remaining seven countries have coal production that is covered in part or

The remaining seven countries have coal production

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The remaining seven countries have coal production that is covered in part or fully by the Coal Regulation. 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 six provide funds for active mines. Hard coal production in Romania, Hungary, Slovakia and Bulgaria was reported to amount to some 4–6 Mt/y. Lignite production however was 20–23 Mt/y almost all of which was not under the state aid regulations. This leaves Germany and Spain as the major producers of subsidised hard coal in the group of seven state aid coal industries. In those countries where state aid 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 state varies widely, and so a direct comparison is not straightforward. However, when calculated on a per tonne basis, it provides a more useful comparison for determining the amount of publicly funded 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 well as inherited social and environmental liabilities associated with mine closure (Article 7). Each mining 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 coal production. In many of these countries, lignite is produced without the need for state aid; however clearly hard coal production is assisted to varying degrees. In 2007, some 99 Mtce of coal was produced in these seven EU member states under the regulation that qualifies for state aid. The largest producer was Poland, which accounted for almost 70% of all the coal produced with state aid, in one form or another. However, Poland’s state aid comes mainly under Article 7, which covers exceptional costs for restructuring the industry.
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40 IEA CLEAN COAL CENTRE State aid in Europe Table 5 Coal priduction falling under the scope of the EU Coal Regulation (Rademaekers and others, 2008) Coal-production, Member State Year Production of coal falling under regulation, tce amount of subsidised coal, tce not captured by the Regulation, tce Bulgaria hard coal 2007 1,278,900 Competitive. Only aid under article 7 0 ortho-lignite 2007 0 0 9,750,800 Czech Republic hard coal 2007 12,142,000 Competitive. No more subsidies since 1993 0 ortho-lignite 2007 0 0 18,734,000 Germany hard coal 2007 17,600,000 17,600,000 0 ortho-lignite 2007 0 0 68,552,000 Hungary hard coal 2007 935,550 935,550 0 Italy hard coal 2007 312,000 Aid from region to capital.
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