Rome (The Brussels Morning Newspaper) – The European Commission approved €700 million Dutch State aid scheme to encourage more sustainable and environmentally pleasant production in the livestock sector
What are the environmental goals of the Dutch aid scheme?
The European Commission has agreed, under EU State aid regulations, a €700 million Dutch scheme to pay farmers for voluntarily closing livestock farming spots in certain areas of the Netherlands to enhance the quality of the environment and enable more sustainable and environmentally friendly exhibitions in the livestock sector.
Which areas in the Netherlands are eligible for the scheme?
The scheme will apply to stress areas designated by the Dutch provinces, which include peatlands, sandy grounds, and stream valleys, as well as locations in and next to Natura 2000 areas. The scheme will operate until 1 October 2029. It will be open to small and medium-sized livestock farmers in the Netherlands who willingly close their livestock farming sites in an eligible area.
To be qualified under the scheme, the annual nitrogen emissions of the area must reach certain thresholds to ensure that their closure has a satisfactory positive environmental impact. Under the scheme, the assistance will take the form of direct grants and subsidised advisory services. It will wrap up to 100% of the eligible costs, including the compensation for the loss of production rights and capacity, the prices of dismantling and disposing of the production capacity, and other expenses directly linked to the site closure.
How does this scheme complement existing Dutch environmental policies?
The project complements two existing Dutch schemes (LBV and LBV-plus) supported by the EU Commission in May 2023 to reduce nitrogen deposition in nature conservation places. Livestock farmers can only partake in one of the three schemes.
The EU Commission evaluated the scheme under EU State aid rules, in certain under Article 107(3)(c) of the Treaty on the Functioning of the European Union, which authorises Member States to fund the development of certain economic activities under specific conditions, and the 2022 Procedures for State aid in the agricultural and forestry sectors and in rural areas.
The EU Commission discovered that the scheme is necessary and proper to achieve the objective pursued, namely the sustainable and environmentally friendly development of livestock farming while keeping the objectives of the European Green Deal. Furthermore, the EU Commission concluded that the plan is proportionate, as it is limited to the minimum necessary, and will have little impact on competition and trade in the EU. On this basis, the EU Commission approved the Dutch scheme under EU State aid rules.
