Alina Oprea • 22 August, 2023 at 1:05 PM
The European Commission has approved, under EU state aid rules, a €200 million (RON 998 million) Romania scheme aimed at compensating forest owners for uncut timber due to mandatory ecological requirements. This scheme aims to halt and reverse the decline of biodiversity, improve ecosystem services, and conserve habitats and landscapes.
Under the scheme, which will run until 31 December 2027, aid will take the form of direct subsidies to private forest owners. The amount of aid per beneficiary will be calculated on the basis of the average price of a cubic meter of wood per foot and the average annual volume of unharvested forest per hectare and per year.
The Commission 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, and the 2022 aid guidelines of the state in the agricultural and forestry sectors and in rural areas. The Commission considered that the scheme was necessary and appropriate to support the development of the forestry sector. Finally, the Commission concluded that the scheme is proportionate, as it is limited to the minimum necessary, and that it will have a limited impact on competition and trade between Member States. Considering these considerations, the Commission approved the scheme notified by Romania, based on EU rules on state aid.
The non-confidential version of the decision will be published, under the number SA.107567, in the State Aid Register on the Commission's website dedicated to competition, as soon as any confidentiality issues have been resolved.