Brussels approves German state aid plans for restoration of peatland

The European Commission has approved a German state aid scheme costing €1.3 billion ($1.5 billion) to support the conversion of farmland into peatland in an effort to cut greenhouse gas emissions.

"The rewetting of drained peatlands in the EU is an important step towards reaching our climate goals, but it also comes with challenges for farmed land," EU Commission Vice President Teresa Ribera said on Tuesday.

Peatlands naturally absorb gases from the atmosphere and store them, but draining them for agricultural use results in the release of the gases and causes 7% of Germany's greenhouse gas emissions, the commission said.

The state aid is meant to cover the costs of rewetting peatlands permanently to then use them again for agriculture and forestry at elevated water levels in so-called paludicultures.

Eligible beneficiaries include landowners, land managers and owners of drainage infrastructure, the commission said.

"The scheme that we approved today sets important incentives to develop new, sustainable value chains while taking all relevant stakeholders on board," Ribera said.

State aid in the European Union is strictly regulated to ensure a level playing field between economically strong and less affluent member countries and in many cases requires the approval of the commission.