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This article investigates the compatibility with the internal market of State aid that may directly or indirectly harm the environment and climate. It examines the case law on State aid and compliance with Article 107(3) TFEU and concludes that the Court of Justice has not laid down any general obligation for the European Commission to prohibit any State aid measure that may have a harmful effect. The European Commission is only required to prohibit aid whose objective is inextricably linked to a contravention of EU environmental law.  Keywords: environmental protection; green transition; Article 107(3)(c); inextricable contravention of EU law

Must the Commission Prohibit State Aid That Harms the Environment?