The European Commission has approved, under EU state aid rules, a €119 million Polish measure to support investments to strengthen the resilience of mountain and lowland forest ecosystems to climate change.
The aid allows for two types of investments. The first type is for water retention measures, such as the construction, extension, or reconstruction of reservoirs and the restoration of wetland area functions. The second is for measures to prevent excessive water erosion, such as building structures to stabilise landslides, the technical and biotechnical protection of ditches, or the reconstruction, extension and restoration of bridges. These investments will prevent or minimise the negative effects of climate phenomena such as droughts, fires and floods. The project follows previous investments and is co-financed by the European Regional Development Fund.
The aid will take the form of a direct grant to the National Forest Holding, which will then manage concrete projects.
The Commission assessed the measure under EU state aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union, which allows member states to support the development of certain economic activities under certain conditions, and the Guidelines for State aid in the agricultural and forestry sectors and in rural areas. The Commission found that the measure is necessary and appropriate since the investments will contribute to the reduction of the impact of extreme weather conditions on forests. Furthermore, the Commission found that the aid is proportionate, as it is limited to the minimum necessary, and will have a limited impact on competition and trade between member states.
On this basis, the Commission approved the Polish measure under EU state aid rules.
The non-confidential version of the decision will be made available under the case number SA.120559 in the state aid register on the Commission’s competition website once any confidentiality issues have been resolved.