The European Commission has approved a German subsidy program amounting to €1.3 billion, which is focused on rewetting agricultural peatlands. Brussels announced this on Tuesday.
The objective of this measure is to reduce greenhouse gas emissions by restoring peatlands to function as natural carbon dioxide sinks. Under the scheme, property owners and managers of drained peatlands who commit to rewetting receive financial support.
The assistance covers various costs, including preparatory consultation services, investments made during implementation, compensation payments for economic damages, and subsidies for establishing paludal cultures. The support is granted in the form of direct grants and can cover up to 100 percent of the eligible costs. Furthermore, to encourage participation, subsidy recipients can receive a 20 percent bonus if they commit within one year.
The Commission examined the regulation according to EU subsidy rules and concluded that it contributes to developing an economic sector, generates an incentive effect, and is suitable for achieving the stated goals. The subsidy was deemed appropriate and having only limited effects on competition and trade between member states. This arrangement is set to run until December 31, 2029.
EU Commissioner for Climate Action, Teresa Ribera, stated that “rewetting drained peatlands across the EU is a vital step toward achieving our climate goals, but it also presents challenges for agricultural land”. She added that “the regulation approved today offers important incentives for developing new, sustainable value chains that involve all relevant stakeholders”.
