Brussels, 10 December 2024
The European Commission has approved, under EU State aid rules, a €200 million German scheme for climate-adapted forest management. The scheme is aimed at strengthening forest resilience and adaptability, increasing forest biodiversity, and preserving forests as natural carbon sinks that absorb and store carbon from the atmosphere.
Under the scheme, aid will be granted for the implementation of sustainable forestry practices, such as ensuring a native and climate-adapted tree species composition, improving the internal forest climate, protecting the forest soil and preserving habitat trees. Aid will also be granted for reserving particularly valuable old deciduous forests for natural forest development and retaining deadwood to improve biodiversity. The aid will take the form of direct grants and cover up to 100% of eligible costs. The scheme, which will run until 31 December 2026, will be open to forestry companies in Germany.
The Commission assessed the scheme under EU State aid rules, in particular under Article 107(3)(c) of the Treaty on the Functioning of the EU, which allows Member States to support the development of certain economic activities under certain conditions, and the 2022 Guidelines for State aid in the agricultural and forestry sectors and in rural areas.
The Commission found that the scheme is necessary and appropriate to achieve the objective pursued, namely the promotion of sustainable forestry practices, while also supporting the objectives of the European Green Deal, the EU Strategy on adaptation to climate change, Forest Strategy and Biodiversity Strategy. Furthermore, the Commission concluded that the scheme is proportionate, as it is limited to the minimum necessary, and will have a limited impact on competition and trade in the EU. On this basis, the Commission approved the German scheme under EU State aid rules.
The non-confidential version of the decision will be made available under the case number SA.116653 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.