Denmark will receive €626 million in support from the European Union to promote afforestation. The aim of this measure is to strengthen environmental protection, mitigate the effects of climate change, and adapt to them, while also contributing to the objectives of the EU’s Common Agricultural Policy.
This measure is part of the “Green” political agreement, which foresees that by 2045 around 10% of the country’s total territory will be converted into natural habitats and forests. The program will run until December 31, 2030.
Support will be provided in the form of direct grants to owners of agricultural land suitable for afforestation and will cover up to 100% of justified costs.
Denmark has informed the European Commission about the plan to support landowners in converting agricultural land into forests.
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The program covers the costs of forest planting, maintenance, as well as compensation for lost agricultural income.
Additional compensation is envisaged if the land becomes a “virgin forest,” due to special restrictions on its use.
According to the European Commission, this measure stimulates the development of economic activity – particularly for landowners with land suitable for afforestation – and is considered necessary and appropriate for achieving afforestation goals and developing forestry in the context of climate change.
Under the 2022 Agricultural Guidelines, the Commission assesses such state aid schemes to ensure they benefit society without distorting competition in the single market. The Commission approved Denmark’s state aid program because it covers only what is truly necessary and has a minimal impact on competition and trade between member states.
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