The European Commission has today approved a €250 million package of state aid for the Portuguese forestry sector. The aim is reforestation and compensation for landowners.
The scheme will support investments aimed at restoring forests following natural disasters, severe weather events and catastrophic occurrences (all of which describe perfectly the ‘carousel of storms’ that ripped through central regions at the end of January/ early February), in accordance with Portugal’s Strategic Plan for the Common Agricultural Policy.
The grant package will remain in force until December 31, 2029. These are direct grants, in the form of fixed premiums paid over a maximum period of 20 years, aimed at encouraging forestry investments and compensating landowners for loss of income, explains RTP.
The support package also aims to ‘compensate landowners for income losses resulting from the reforestation of agricultural and non-agricultural land’.
Brussels notes that the support includes reforestation premiums for owners of agricultural and non-agricultural land who cease farming and/ or commit to maintaining new forest areas, and restoration premiums for those who restore forest potential following fires and/ or adverse weather conditions.
The Commission considered the package “necessary, appropriate and proportionate’ , believing it will have a ‘limited impact’ on both competition and trade between Member States.
The scheme is co-financed by the European Agricultural Fund for Rural Development to the tune of up to €21.9 million, and falls within the framework of Portugal’s Strategic Plan for the Common Agricultural Policy, concludes RTP’s report.
Source: RTP
