The European Commission announced that, following an in-depth State aid investigation, it has decided to approve conditionally a Danish project to grant exemptions from carbon dioxide taxes to companies covered by the EC Emissions Trading Scheme. The Commission considered that the original notified aid scheme could distort competition and diminish the environmental objectives of the energy tax. The measure has therefore been approved on the condition that it is amended so that all affected companies pay an energy tax which respects at least the minimum tax levels set by EC law.