State aid: Commission approves a €150 million French scheme for the development of forestry and the adaptation of forests to climate change

The European Commission has cleared under EU state aid rules a €150 million French aid scheme aimed at developing forestry and adapting forests to change climatic. The scheme will be partially funded through the Recovery and Resilience Facility (FRR), following the positive assessment by the Commission of the French recovery and resilience plan and its adoption by the Council. The support will take the form of direct subsidies allocated to private owners or their management associations such as forest economic and environmental interest groups and forest cooperatives. Public bodies and owners will also be able to benefit from the measure.

The measure will finance investments aimed at adapting forest stands to climate change, as well as investments beneficial to the capture of aerial carbon, the preservation of biodiversity and the enhancement of ecosystem services. It will be in place until 31 December 2022. The Commission has assessed the French scheme on the basis of EU state aid rules, and in particular on the basis of its 2014 state aid guidelines in the agricultural and forestry sectors and in rural areas. The Commission noted that the planned aid will contribute to the EU objectives of, inter alia, promoting the efficient use of resources, in order to achieve smart and sustainable growth, in line with the European Green Deal. In addition, the Commission found that any distortions of competition caused by state support will be kept to a minimum.

On this basis, the Commission has concluded that the measure is in line with EU state aid rules. The Commission assesses as a priority the measures involving State aid contained in the national recovery plans presented under the FRR and has provided guidance and support to member states during the preparatory phases of the national recovery plans, in order to to facilitate the rapid deployment of the FRR. More information is available on the website of the Commission's Directorate General for Competition in the State aid register, under number SA.61929.

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