BRUSSELS, Oct. 24 (Xinhua) -- Brussels gave the green light to Lisbon's 60 million euros (65.27 million U.S. dollars) scheme to buy low-emission buses on Monday, saying Portugal's move was in line with the bloc's state aid rules.
The purchase would contribute to reducing carbon dioxide emissions while limiting distortions of competition in the single market, said the European Commission, the bloc's executive arm, in a statement.
Under Portugal's plan, the government would cover 85 percent of the financial support while bus operators would take the rest.
The project's contribution to EU environmental goals clearly outweighed any potential distortion of competition brought about by the public financing, the commission concluded.
"This measure will help to improve air quality in Portugal, and supports the transition towards greener public transportation in urban areas without distorting competition," said Margrethe Vestager, EU commissioner for competition, in a statement.
Portugal notified the scheme in June, saying the move was expected to lead to a reduction of greenhouse gas emissions for each bus of at least 15 percent compared to current European standards, according to the Commission.