Commission approves EUR 1.3 billion German State aid scheme to support rewetting of agricultural peatlands

The Commission has greenlighted a EUR 1.3 billion German scheme to support landowners and land managers who commit to rewet drained peatlands. The measure aims to cut greenhouse gas emissions by restoring peatlands as natural carbon sinks and preventing further emissions from agricultural and forestry use. The scheme will run until 31 December 2029 and provides direct grants covering preparatory costs, investment, compensation for economic losses, and support for developing paludiculture systems, with an additional 20% incentive for early adopters.

The Commission approved the scheme under the the 2022 Guidelines for State aid in the agricultural and forestry sectors and in rural areas, concluding that it is necessary proportionate, and appropriate to achieve the objectives pursued.

For more information, see the Commission’s PR.