Commission approves €500 million French state aid scheme for investments in planting intra-plot hedges and trees

The European Commission has approved, under EU state aid rules, a €500 million French aid scheme to encourage small and medium-sized enterprises active in primary agricultural production to plant intra-plot hedges and trees to adapt their farms to climate change conditions.

Under the scheme, the aid will take the form of direct grants or subsidised services. The scheme will apply until 31 December 2030. The objective of the notified scheme is to increase the number of intra-plot hedges and trees, thereby strengthening sustainable agricultural production. The measure therefore aims to protect the environment and biodiversity, and supports the achievement of the Union's environmental and climate objectives.

The Commission examined 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, and the guidelines on state aid in the agricultural and forestry sectors and in rural areas. The Commission considered that the measure is necessary and appropriate to promote investment in a sector where the context is not conducive to new investment due to the uncertainties related to climate change. Furthermore, the Commission found that the scheme is proportionate, as it is limited to the minimum necessary, and that it would have a limited impact on competition and trade between member states. On this basis, the Commission authorized the French scheme under EU state aid rules.

The non-confidential version of the decision will be made available under the case number SA.117248 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

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