The European Commission has approved, under EU State aid rules, a €626 million Danish scheme to support afforestation.

Denmark told the commission that the measure seeks to support landowners to convert agricultural land into forests.

The scheme will cover the costs of planting forest on agricultural land, forest maintenance and foregone agricultural income.

Additional compensation is also provided under the scheme in the case of forest becoming ‘untouched forest' to account for the additional restrictions imposed on the land.

The scheme forms part of the Danish political agreement which aims to convert around 10% of Denmark's total land area into nature and forest by 2045.

The scheme will run until December 31, 2030.

According to the EU Commission, the measure will "contribute to achieving the objectives of the Common Agricultural Policy (CAP) by strengthening environmental protection and contributing to climate change mitigation and adaptation".

Under the scheme, the aid will take the form of direct grants to owners of agricultural land suitable for afforestation. The aid will cover up to 100% of the eligible costs.

In its assessment, the commission found the scheme facilitates the economic activity of owners of agricultural land suitable for afforestation.

"The measure is necessary and appropriate to convert agricultural land into forest to meet the afforestation goals and foster the development of forestry in the context of climate change," the commission said.

Teresa Ribera, executive vice-president for clean, just and competitive transition, described the Danish scheme as "an important measure".

"It will rapidly expand the Danish national forest estate and will deliver lasting benefits for climate change and address several challenges, such as carbon dioxide (CO2) reductions, biodiversity protection, nitrogen reduction, and drinking water protection," she said.