The European Commission is carrying out an in-depth investigation into Malta’s plans to grant €15.5m to state-owned Enemalta from its share of EU regional funding, to support the modification of boilers at the Delimara Power Station. This would represent 84.7 per cent of the estimated €18.3m cost, with the remainder financed by a government guaranteed commercial loan at market prices. The project is intended to assist Malta meet its obligations to reduce Nitrogen Oxide and dust emissions under the Large Combustion Plants (LCP) Directive and to use the best available technologies under the Integrated Pollution Prevention and Control (IPPC) Directive. The Commission’s concern is that the investment, as proposed, would subsidise Malta’s legal obligation to meet environmental standards which other electricity operators in the EU are obliged to meet independently. As this can raise competition issues, usually environmental investment aid can be granted only where it is intended to assist an undertaking to go beyond their legal obligation to meet environmental standards or to meet them earlier than required. However, the Maltese authorities have been given an opportunity to put their case in more detail and other interested parties have been invited to comment.