The European Commission approved a German subsidy scheme amounting to 1.3 billion euros aimed at rewetting agricultural peatlands, according to a statement released by the Brussels authorities on Tuesday. The primary goal of this scheme is to cut greenhouse gas emissions by restoring peatlands to function as natural carbon dioxide sinks. Under the regulation, owners and managers of drained peatlands who commit to rewetting will receive financial assistance. The support covers various costs, including preparatory consultation services, investments made during the process, compensation payments for economic damages, and subsidies for establishing wetland cultures. These subsidies are provided as direct grants and can cover up to 100 percent of the eligible costs. Furthermore, to incentivize participation, recipients who commit within one year can receive an additional 20 percent bonus. After reviewing the scheme against EU subsidy regulations, the Commission concluded that it contributes to developing a specific industry, has an incentive effect, and is suitable for achieving its intended goals. They determined that the subsidy is appropriate and will only have limited effects on competition and trade among member states. The scheme is set to remain operational until December 31, 2029. EU Commission Vice President Teresa Ribera stated, “Rewetting drained peatlands across the EU is a crucial step toward achieving our climate goals, although it presents challenges for land previously used in agriculture. Today’s approved regulation offers vital incentives for developing new, sustainable value chains that involve all relevant stakeholders”.
EU Approves German Funding for Peatland Restoration Project
