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European Commission has adopted a revised framework for State aid in land and multimodal transport, aimed at accelerating the shift towards more sustainable transport modes while simplifying procedures for Member States. The new rules will enter into force on 30 March 2026.

The package consists of two instruments: the State aid Land and Multimodal Transport Guidelines (LMT Guidelines) and the Transport Block Exemption Regulation (TBER). Together, they modernise the EU’s State aid framework for land transport and replace the previous 2008 guidelines that focused mainly on railway undertakings.

Under the new LMT Guidelines, the Commission clarifies when State aid for transport projects can be considered compatible with the EU internal market. The framework covers transport modes considered more sustainable than road transport, including rail freight, inland waterways and multimodal transport solutions combining rail or inland waterways with other modes, including short sea shipping.

The guidelines provide clearer conditions for a range of support measures, including aid for building or upgrading rail infrastructure and inland waterway facilities, support to launch new rail or inland waterway services, and compensation mechanisms linked to public service obligations in the rail freight sector. They also introduce greater flexibility for aid measures supporting the green and digital transition in transport, for example through investments that reduce external costs or improve interoperability across national rail systems.

Another element of the framework focuses on improving access to financing for smaller operators. The guidelines include safeguards intended to support the entry of new operators in rail and inland waterway markets and to facilitate access to funding for SMEs and mid-sized companies investing in rolling stock or vessels.

Alongside the guidelines, the Commission has adopted the Transport Block Exemption Regulation (TBER), which exempts certain categories of aid from the requirement of prior notification to the Commission. This means that Member States will be able to grant support more quickly for a number of predefined measures in rail, inland waterways and sustainable multimodal transport, provided the conditions of the regulation are met. The TBER will apply until the end of 2034.

The new framework will simplify procedures while ensuring that public support remains proportionate and does not distort competition within the EU internal market.

The new guidelines and the revised TBER can be found here.

Source: European Commission