The European Commission has approved, under EU State aid rules, a €1.04 billion Danish scheme to support landowners committing to voluntarily remove agricultural or forestry land from production to reduce agricultural emissions, the Commission said in a statement. Denmark notified the Commission of its plans to support landowners voluntarily ceasing agricultural production on their land to reduce agricultural greenhouse gas emissions, as well as nitrogen and phosphorus deposits into the aquatic environment.
The project involves the permanent extensification of farming, meaning that the land will not be tilled and no pesticides or fertilizers will be used. This will lead to the restoration of the soil’s natural hydrology through the creation of wetlands, which will in turn lead to a reduction in the emissions of greenhouse gases and nitrogen. To achieve the desired effects, projects may support actions such as the creation or relocation of fences to allow grazing to maintain nature maintenance and promote biodiversity.
In areas with forest land that is connected by water to agricultural land, additional compensation may be granted to landowners also ceasing forest land production. Forest land that is permanently set aside cannot be included in forest production again, even after a change of ownership, as the goal is to achieve a long-term and lasting environmental and climate impact.
Eligible costs include the cost of non-productive investments, a compensation for the permanent loss of income caused by the setting-aside of land and the restrictions imposed, and legal, administrative, and survey costs of land consolidation. The scheme is part of a Danish initiative to finance a significant transformation of land, with the aim to create the basis for a good aquatic environment, to reduce climate pressure while providing more space for nature and better conditions for biodiversity, and to protect drinking water. The scheme will run until December 31, 2030.
Under the scheme, the aid will take the form of direct grants or benefits in kind such as technical consultancy or the purchase of goods and services, covering up to 100 percent of the eligible costs.
