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EU approval for farmers' forestry grants

The European Commission has approved a Government scheme aimed at increasing the amount of land covered by forest.

The target of the afforestation scheme, which will cost €308 million, is to reach 18% forest cover in Ireland by the end of 2027 – up from the current figures of 11.6%.

The scheme will establish 8,000 hectares of new forests a year.

Under the initiative, farmers will be given grants, covering up to 100% of the eligible costs.

The new programme provides for increased premiums for planting trees of up to €1,142/ha depending on the forest type, as well as extending the premium period from 15 to 20 years for farmers.

The scheme, which will run until 31 December 2027, will be open to companies of all sizes in the forestry sector.

The commission said that it assessed the scheme under EU state-aid rules, in particular article 107(3)(c) TFEU, which allows member states to support the development of certain economic activities under certain conditions.

Climate objectives

The EU body found that the scheme was necessary and appropriate to support afforestation in Ireland, and that it would strengthen environmental protection and contribute to achieving the EU's environmental and climate-related objectives.

“Moreover, the scheme will have an ‘incentive effect' as the beneficiaries would not carry out the investments without public support,” it stated.

The commission concluded that the scheme was proportionate, and would have a limited impact on competition and trade between member states.

Applications

Welcoming the announcement, Charlie McConalogue (Minister for Agriculture, Food and the Marine, pictured) said that his department would study the details of the commission’s decision, complete an environmental assessment, and open the scheme to applications “in the coming weeks”.

The scheme is part of a wider €1.3 billion forestry programme.

Pippa Hackett (Minister of State with responsibility for forestry) described the decision as “a hugely significant milestone” in a longer-term aim to increase forest cover as part of the State’s Climate Action Plan.