EU Commission approves EUR 626 million Danish state aid scheme to support forests

Brussels – The European Commission has approved, under EU State aid rules, a 626 million euros (DKK 4 672 million) Danish scheme to support afforestation. 

The measure will contribute to achieving the objectives of the EU’s Common Agricultural Policy by strengthening environmental protection and contributing to climate change mitigation and adaptation, the Commission said in a note.

Denmark has notified the Commission of its plan to support landowners in converting agricultural land into forests. The scheme will cover the costs of planting forests on agricultural land, the costs of forest maintenance, and the costs of foregone farm income. Additional compensation is also provided in the case of the forest becoming an “untouched forest” due to the extra restrictions imposed on the land. 

The scheme forms part of the Danish political agreement on the implementation of a green Denmark, which foresees the conversion of approximately 10 percent of Denmark’s total land area into nature and forest by 2045. The scheme will run until 31 December 2030. Under the scheme, the aid will take the form of direct grants to owners of agricultural land suitable for afforestation. It will cover up to 100 percent of the eligible costs.