European Commission Approves Czech Scheme to Support Sustainable Forest Management

Strategic Insights -

The European Commission has approved a CZK 17.4 billion (approximately EUR742 million) Czech scheme to support sustainable forest management, contributing to the achievement of the Common Agricultural Policy's objectives. The measure will run until 31 December 2028, supporting forest owners and entities with similar rights and obligations. The scheme aims to implement sustainable forest management techniques, promote forest growth, and adapt forests to climate change. Eligible beneficiaries will receive an aid amount of approximately CZK 4.22 (EUR0.18) per day per hectare of forest land, covering up to 100% of eligible costs.

Key Takeaways:

  • The Czech scheme has a budget of approximately EUR742 million (CZK 17.4 billion) to support sustainable forest management techniques, forest growth, and climate change adaptation.
  • The measure will run until 31 December 2028, with direct grants to small, medium, and large forest owners and other entities with similar rights and obligations.
  • The aid will cover operations designed to prevent soil erosion on deforested stands, protect forest biodiversity, and protect the structure and composition of forest soil.
  • The scheme aims to support the general objective of the Common Agricultural Policy, strengthening environmental protection, including biodiversity, and contributing to achieving the EU's environmental and climate-related objectives.
  • The Commission found that the aid has an "incentive effect" and is proportionate, having a limited impact on competition and trade between Member States.
  • The aid brings about positive effects that outweigh any potential distortion of competition and trade in the EU.
  • The scheme was approved under EU State aid rules, specifically Article 107(3)(c) of the Treaty on the Functioning of the European Union and the 2022 Guidelines for State aid in the agricultural and forestry sectors and in rural areas.

Statistics:

  • The Czech scheme has a budget of EUR742 million (CZK 17.4 billion).
  • The scheme will run until 31 December 2028.
  • Eligible beneficiaries will receive an aid amount of approximately EUR0.18 (CZK 4.22) per day per hectare of forest land.
  • The aid will cover up to 100% of eligible costs.
  • The Commission found that the aid has a limited impact on competition and trade between Member States.

Sources:

  • European Commission Press Release, "State aid: Czech forestry scheme approved" (no date).
  • Article 107(3)(c) of the Treaty on the Functioning of the European Union.
  • 2022 Guidelines for State aid in the agricultural and forestry sectors and in rural areas.