The European Commission has approved a €626 million Danish plan to support planting forests on farmland, aiming to boost environmental protection and fight climate change. This comes as part of Denmark’s goal to turn about 10% of its land into natural areas and forests by 2045, under a green policy agreement (read more here).
The plan offers direct payments to farmers and landowners who convert agricultural land into forests. It covers all costs – from planting and maintaining the forest to the income they lose by not farming that land. Extra support is available if the forest is allowed to grow naturally without human interference, which comes with extra land use restrictions. The scheme will run until the end of 2030.
The Commission reviewed the plan under EU rules that allow governments to support certain economic activities if conditions are met. They found the support necessary and suitable to help Denmark reach its forest planting targets while limiting any impact on competition between EU countries.
The aid is seen as well-sized, covering just the costs needed to encourage forest planting without giving an unfair advantage. The Commission said the environmental and climate benefits outweigh any potential downsides to trade or competition in the EU.
With this approval, Denmark’s scheme can move forward, contributing to greener landscapes and helping meet the EU’s broader climate and environmental goals.