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The European Commission has announced it granted approval, in accordance with EU state aid regulations, for a Luxembourg state aid scheme designed to promote the conservation of biodiversity within the agricultural environment amounting to €15 million.
The scheme is intended to bolster the implementation of biodiversity preservation programmes, focusing on natural habitats and wildlife in rural areas. It particularly encourages the adoption of agricultural practices that positively impact the environment and climate. Small and medium-sized enterprises engaged in primary agricultural production will be the primary beneficiaries. Support under the scheme will be provided through direct grants, with the aid amounting to a maximum of 100% of eligible costs. The scheme is slated to remain in effect until 31 December 2027.
The Commission conducted an evaluation of the scheme in line with EU State aid rules, specifically referencing an article of the Treaty on the Functioning of the European Union. This article allows Member States to support the development of specific economic activities under definite conditions, as outlined in the guidelines on state aid in the agricultural and forestry sectors and in rural areas.
The Commission deemed this measure to be “essential” and “appropriate” for promoting biodiversity in the agricultural context. Additionally, it found the scheme to be "proportionate", limited to the minimum necessary and expected to have a restrained impact on competition and trade among Member States. Thus, the European Commission granted authorisation for the Luxembourg state aid scheme under EU state aid rules.
