EU Approves €626 Million Danish Scheme for Forest Expansion

The European Commission has approved a €626 million Danish state aid scheme to support the planting of forests on agricultural land. This ambitious initiative marks a significant step in Europe’s broader green transition, as it not only helps Denmark accelerate its climate goals but also sets an example for how public funds can balance environmental protection with rural economic realities.

The scheme is designed to cover costs related to planting and maintaining forests, while also compensating farmers for the income they forgo when converting their land from agriculture to woodland. This dual approach is crucial: climate action must not come at the expense of farmers’ livelihoods, and Denmark’s program demonstrates that ecological and economic interests can be aligned. By reducing financial barriers, the government ensures that more landowners will see reforestation as a viable option, thereby multiplying the impact on biodiversity and carbon sequestration.

The initiative reflects the EU’s wider objectives of sustainable land use and climate neutrality. Absorbing greenhouse gas emissions, restoring ecosystems, and strengthening resilience against climate change. Denmark’s decision to dedicate such substantial resources provides a concrete model for other Member States considering similar measures.

“This is an important measure that will help landowners convert agricultural land into forests. It will rapidly expand the Danish national forest estate and will deliver lasting benefits for climate change and address several challenges, such as CO2 reductions, biodiversity protection, nitrogen reduction, and drinking water protection”.

Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition

In approving this scheme, the European Commission has reaffirmed that large-scale, publicly supported investment in nature is not only permissible under EU rules but also essential for reaching common climate and biodiversity goals.