Spain’s government today received approval from the European Commission for a subsidy scheme to promote domestic coal over cheaper foreign imports.

Green groups swiftly condemned the decision as being at odds with EU policy on clean energy and state aid.

The Commission’s competition authorities decided that the Spanish plan was in line with EU rules, although it wants the scheme wound up before 2015. The scheme allows the Spanish government to subsidise energy companies for producing electricity with more expensive domestic coal.

Spain insists these measures are needed to protect security of supply, because it uses a lot of intermittent wind and solar energy, and is poorly connected to other countries’ electricity, therefore exposing it to supply shocks.

Environmentalists disagree and have noted the findings of Spain’s national grid operator that the country has been a net exporter of electricity for the past six years.

Tony Long, director of WWF’s European office, said that Europe’s reputation as a clean-energy leader was now at risk. “This decision undermines the credibility of the EU’s energy and environmental pledges. Pollution will increase, consumers will pay more, cleaner investments will be delayed and other energy providers in Spain will be disadvantaged.”