EUR 250 million scheme to support forestry sector in Portugal approved
The European Commission has approved a scheme to support investments for the restoration of forests following natural disasters, severe weather or catastrophic events, in accordance with the Portuguese CAP Strategic Plan. It also aims at offsetting revenue losses experienced by landowners due to the reforestation of agricultural and non-agricultural land.
The aid will take the form of direct grants, in the form of fixed premiums that will be paid for a period of up to 20 years. Reforestation premiums will be granted to owners of agricultural and non-agricultural land for ceasing agricultural activities or committing to maintaining new forests in their land, while restoration premiums will be granted to owners that restore their land’s forest potential following natural disasters, severe weather or catastrophic events. The scheme is co-financed by the European Agricultural Fund for Rural Development by up to EUR 21.9 million and was already approved under the CAP rules as part of the Portuguese National Strategic Plan. It will run until 31 December 2029.
The Commission assessed the scheme under Article 107(3)(c) of the TFEU and the Guidelines for State aid in the agricultural and forestry sectors and in rural areas. The Commission found that the scheme is necessary and appropriate toencourage investments in reforestation, that it is proportionate and will have a limited impact on competition and trade between Member States. On this basis, the Commission approved the Portuguese scheme.
For more information, see Commission’s PR.