Correct application of the transport BER – guidelines for public bodies

On March 16, 2026, the European Commission adopted a comprehensively renewed state aid framework for land and multimodal transport, which came into force on March 30, 2026. State aid is to be used more specifically for sustainable modes of transport. The EU wants to significantly reduce procedural burdens for the member states and at the same time ensure fair competition in the internal market.

The new aid framework is intended to help shift traffic from the roads to more climate-friendly modes of transport, facilitate investment in infrastructure, vehicles and interoperability and accelerate the decarbonization and digitalization of the transport sector.

The new transport state aid framework marks a strategic relaunch of EU state aid law in the transport sector. It combines an ecological steering effect, economic efficiency and procedural simplification and thus creates a central funding lever for the transport transition in Europe.

For which public bodies the new transport BER is relevant

The new Transport Block Exemption Regulation affects public bodies that plan, grant or review state aid in the transport sector. These are, in particular, granting authorities, funding bodies (including local authorities), specialist departments for transport and infrastructure as well as legal entities that are involved in the design, review or safeguarding of funding measures.

Transport BER and transport guidelines as a common legal framework

The new transport aid framework consists of two complementary instruments:

• Guidelines for state aid in land and multimodal transport (Land and Multimodal Transport Guidelines – LMTG) and
• Block Exemption Regulation for state aid in the transport sector (Transport Block Exemption Regulation – TBER / “Transport Block Exemption Regulation”)

Together, the two sets of regulations replace the 2008 Railway Aid Guidelines and significantly extend their scope of application.

The system follows a two-stage approach. The Transport Block Exemption Regulation exempts certain categories of aid in rail, inland waterway and sustainable multimodal transport from the notification and approval requirement under Art. 108 (3) TFEU under certain conditions.

If there is no exemption under the Transport Block Exemption Regulation, the aid must still be notified to and approved by the European Commission. For these procedures, the transport guidelines define the conditions under which approval can be granted and the aid is deemed compatible with the internal market.

Only sustainable modes of transport in the scope of application

The Transport Block Exemption Regulation applies exclusively to modes of transport that are more sustainable than road transport. It covers rail transport, inland waterway transport and sustainable multimodal transport, provided at least one mode of transport is rail or inland waterway transport or land transport is combined with short sea shipping.

In contrast to the 2008 rail aid guidelines, the transport guidelines no longer only cover the traditional rail sector, but go far beyond this. In addition to rail transport and inland waterway transport, sustainable multimodal transport is also regulated for the first time.

The transport guidelines continue to exclude air and maritime transport as well as public passenger transport, which is still regulated by Regulation No. 1370/2007.

Which aid measures are exempted

According to the Transport Block Exemption Regulation, both investment and operating aid can be granted without notification. The Transport Block Exemption Regulation provides an exhaustive list of the types of aid that may be granted without notification under certain conditions. The main types of aid include

• Aid to reduce external transport costs, for example emissions, noise or congestion avoidance
• Aid for the establishment of new commercial transport links by rail or inland waterway
• Investment aid for the construction, expansion and renewal of rail and inland waterway infrastructure, multimodal terminals and transhipment facilities
• Aid for private sidings
• Aid for rail and inland waterway transport vehicles
• Aid for interoperability, technical adaptation and modernization, for example ETCS and DAK equipment
• Special subsidies for intermodal loading units and on-board handling technology

Examples of exempted funding under the Transport Block Exemption Regulation include the expansion of a freight transport center or an inland port, the construction of a rail connection, the acquisition of low-emission inland waterway vessels and the establishment of new freight rail connections.

What are the requirements for exemption under the Transport Block Exemption Regulation?

A prerequisite for the exemption of aid under the Transport Block Exemption Regulation is that it does not fall within the regulatory area covered by the Transport Guidelines. In addition, the subsidized measure must serve the objective of transport coordination within the meaning of Art. 93 TFEU and, in particular, contribute to a modal shift, an increase in the efficiency of sustainable modes of transport or a reduction in environmental and climate pollution.

The prerequisites for exemption from aid under the Transport Block Exemption Regulation are

• The aid must be necessary , i.e. without the aid the measure would not be implemented or would only be implemented with a delay or to a lesser extent.

• The aid must be proportionate Aid must be limited to the minimum necessary. Aid intensities and maximum amounts, which are set according to the type of aid, must be observed. There must be no overcompensation.
• The aid must have an incentive effect The application for funding must therefore be submitted before the measures begin.

• The aid must be transparent and clearly calculable in advance.

• The aid must not have a negative impact on competition and the market and must not lead to excessive distortions of competition.

In addition, the formal requirements must also be met, in particular the transparency and publication obligations. The new Transport Block Exemption Regulation means significantly shorter implementation times for funding measures and also more creative freedom.

The transport guidelines apply to aid subject to notification

All state aid in land and multimodal transport that is not covered by an exemption under the Transport Block Exemption Regulation and is therefore subject to notification is governed by the Transport Guidelines. These regulate the conditions under which aid can be approved by the EU Commission as compatible with the internal market. The Transport Guidelines entered into force together with the Transport Block Exemption Regulation on March 30, 2026. Like the Transport Block Exemption Regulation, the Transport Guidelines also regulate both investment and operating aid.

According to the guidelines, aid can be approved if the subsidized measure has a clearly justified sustainability effect in addition to the positive effects on the environment, climate protection and more efficient transport systems. The reduction of external costs (CO₂, noise), modal shift, interoperability and digitalization will be particularly important here.

In addition, the classic aid criteria (incentive effect, necessity, appropriateness and exclusion of undue distortions of competition) also apply here.

Effects on the funding practices of public authorities

For the federal government, federal states and local authorities, the new aid framework means faster funding decisions, less administrative work for standard measures and greater legal certainty when designing funding programs. In future, many measures can be implemented without prior notification, provided that the requirements of the Transport Block Exemption Regulation are met.

At the same time, the simplification of the procedure goes hand in hand with increased personal responsibility on the part of the aid providers. In particular, this requires careful examination and comprehensible documentation of the funding decision.

Checklist for applying the transport BER in practice

Area of application

• Does the measure concern rail transport, inland waterway transport or sustainable multimodal transport?
• Is at least one mode of transport rail or inland waterway involved or is there a combination with short sea shipping?

Type of aid

• If it is a type of aid listed exhaustively in the Transport Block Exemption Regulation, for example
  • Aid to reduce external transport costs,
  • Aid for new commercial transport links,
  • Investment aid for infrastructure, terminals or transshipment facilities,
  • Aid for private sidings,
  • Aid for rail or inland waterway transport vehicles,
  • Aid for interoperability and technical modernization?

Objective of the measure

• Does the measure serve to coordinate traffic within the meaning of Art. 93 TFEU?
• Does it contribute to modal shift, increase efficiency or reduce environmental and climate impact by meeting one or more of the following criteria?
  • Structural and system measures: Is there a modal shift from road to rail or inland waterways?
  • Capacity and network management: For example, are overcapacities reduced, bottlenecks eliminated, transport services bundled or new market providers enabled to enter the market to improve the transport structure?
  • Interaction between different modes of transport (road, rail, inland waterway): Is it aimed at the spatial or temporal or functional coordination of traffic flows and modes of transport?
  • Are environmental and climate targets being pursued (decarbonization, support for sustainable modes of transport)?
  • Interoperability: Is technical interoperability being promoted (e.g. ERTMS, digitization)?

Material requirements

• Incentive effect: application for funding before the start of the measure; no mere refinancing of investments already made
• Necessity: Not feasible without aid, or only feasible with a delay or to a lesser extent
• Proportionality: limitation to the minimum necessary; no overcompensation
• Transparency: aid is clearly calculable in advance
• No negative effects on competition and the market

Formal requirements

• Compliance with transparency and disclosure obligations
• Complete and proper documentation of the funding process

If these requirements are met, the measure can generally fall under the Transport Block Exemption Regulation and be granted without notification. Otherwise, it must be checked whether a notification is required in accordance with the transport guidelines.

You can also read about state aid law:

New DAWI exemption decision enables promotion of affordable housing

Special Infrastructure Fund and State Aid Law: Orientation for Funding Practice and Planning