European Commission Approves €53 Million Danish Scheme to Support Climate-Friendly Dairy Production

The initiative, which will run until December 31, 2027, is part of Denmark's broader efforts to reduce methane emissions from the agricultural sector, particularly livestock farming, and contribute to the country’s national greenhouse gas (GHG) reduction targets.

The scheme is designed to incentivize dairy farmers to adopt more sustainable practices that lower methane emissions, a significant contributor to global warming. Additionally, farmers who commit to reducing emissions beyond the mandatory standards will receive extra financial support, further encouraging more ambitious climate action.

Key Features of the Danish Scheme:

Eligibility: Open to dairy livestock farmers across Denmark.
Form of Aid: Direct grants covering up to 100% of eligible costs related to methane reduction measures.
Duration: Runs until December 31, 2027.

The scheme was assessed under Article 107(3)(c) of the Treaty on the Functioning of the EU, which allows member states to provide state aid for the development of certain economic activities under specific conditions. It was also reviewed in light of the 2023 Guidelines for State aid in the agricultural, forestry, and rural sectors.

The European Commission determined that the Danish scheme is necessary and proportionate to achieve the intended climate goals. It aligns with the EU’s broader objectives under the Common Agricultural Policy and the Farm to Fork Strategy, which aim to promote sustainability within the agricultural sector. Additionally, the commission concluded that the scheme’s impact on competition and trade within the EU would be limited and proportionate to the benefits it brings to climate action.

This approval underscores the EU's commitment to supporting member states in their efforts to achieve climate targets and reduce the environmental impact of agricultural practices.