The European Commission has approved a €1.04 billion Danish state aid scheme to pay landowners to voluntarily take agricultural or forestry land out of production to cut greenhouse gas emissions.
Denmark told the Commission the scheme will support landowners who stop farming on their land to reduce agricultural emissions, and to lower nitrogen and phosphorus entering waterways, the Commission informed on Friday.
The projects involve permanently “extensifying” farming — meaning land will not be tilled and no pesticides or fertilisers will be used — and wetlands will be created to restore the soil’s natural water conditions.
Projects may also fund practical measures such as creating or relocating fences so that grazing can continue in some areas to maintain land and support biodiversity.
Landowners may receive extra compensation for stopping timber production on forest land that is linked by water to agricultural areas.
Forest land set aside under the scheme cannot be returned to forest production later, even if it changes owner.
Grants and compensation until 2030
Support will be provided as direct grants or benefits in kind, such as technical advice or the purchase of goods and services, and can cover up to 100% of eligible costs, the Commission said.
Eligible costs include non-productive investments, compensation for the permanent loss of income from setting land aside, and legal, administrative and survey costs linked to land consolidation.
The scheme will run until 31 December 2030.
The Commission said it assessed the plan under EU state aid rules, which set conditions for when governments can support businesses and landowners without unfairly distorting competition in the EU, and approved the scheme on that basis.
