The European Commission has approved, under EU State aid rules, a Danish scheme, with a budget of approximately €53 million, to support a more climate-friendly dairy production.
The scheme is aimed at supporting livestock farmers in the introduction of a more climate-friendly dairy production by reducing methane emissions.
It will contribute to meeting the national binding reduction target of reducing greenhouse gas (GHG) emissions from the agricultural and forestry sectors.
Additional aid will be granted to farmers who commit to further reduce methane emissions beyond the mandatory standards.
Danish Scheme
The scheme will run until December 31, 2027 and will be open to dairy livestock farmers in Denmark.
Under the scheme, the aid will take the form of direct grants and will cover up to 100% of eligible costs.
The commission assessed the scheme under EU State Aid rules, in particular under Article 107(3)(c) of the Treaty on the Functioning of the EU, which allows member states to support the development of certain economic activities under certain conditions.
It was also assessed under the 2023 Guidelines for State aid in the agricultural and forestry sectors and in rural areas.
The commission found that the scheme is necessary and appropriate to achieve the objective pursued, which is the promotion of climate objectives within the agricultural sector as set out in Common Agricultural Policy and the Farm to Fork Strategy.
The commission concluded that the scheme is proportionate, as it is limited to the minimum necessary, and will have a limited impact on competition and trade in the EU.
