The scheme aims to stop and reverse biodiversity decline, improve ecosystem services and preserve habitats and landscapes, the Commission said in a press release.
The aid will take the form of direct grants to private forest owners and the scheme will end on December 31, 2027. The amount of aid per beneficiary will be calculated based on the average price of a cubic meter of wood and the annual average volume of unexploited forest per hectare and per year.
The Commission assessed the measure under EU State aid rules, in particular under the European Union State Aid Guidelines and Article 107(3)(c) of the Treaty on the Functioning of the European Union, which allows Member States to support the development of certain economic activities under certain conditions. The Commission found that the scheme is necessary and appropriate to encourage forest regeneration, concluding that it is proportionate and will not have undue negative effects on competition and trade within the EU. Consequently, the Commission approved the scheme under EU state aid rules.