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22 Mar 2024

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EFTA Surveillance Authority opens formal investigation into possible breach of State aid rules benefitting the Norwegian wood industry

Following a complaint by the Norwegian Precast Concrete Association and the Norwegian Steel Association, the EFTA Surveillance Authority (ESA) has on 20 March 2024 initiated a formal investigation into two State aid measures benefitting the Norwegian wood industry.

The first measure involves a scheme providing financial support for investments and business development in the agricultural sector. The complainants raised issues as regards a rule in the scheme under which additional aid may be granted if the agricultural production facility incorporates wood as a primary material, thereby favouring the wood industry over the concentre/steel industry.

The second measure pertains to the financing of focal points, which are instrumental in applying for individual projects co-financed by different actors. These projects aim to facilitate network building and the exchange of knowledge and best practices related to wood utilisation in construction projects.

The ESA's preliminary assessment raises doubts as to the compatibility of these two measures with the State aid rules of the EEA Agreement. The Norwegian authorities now have until 22 April 2024 to submit their comments. Interested parties are also invited to submit their comments within one month of the publication of the decision in the Official Journal of the EU.

For further information: see EFTA’s Decision