EU Approves €5 Billion German and Czech Carbon Removal, Green Fuel Plans
The European Commission announced on Tuesday the approval of a series of climate-focused state aid schemes, including a €1.3 billion plan by Germany to reduce greenhouse gas emissions by increasing carbon storage in peatlands, and a €3.7 billion Czech program to increase sustainable biomethane production.
According to the Commission, the draining of peatlands, which are currently used for agriculture and forestry, is responsible for 7% of annual greenhouse gas emissions, while the new scheme is aimed at preventing further decomposition of the peat body and, where possible, restoring peat soils as natural carbon sinks. Peatlands are wetland ecosystems where plant material does not fully decompose and accumulates as peat, which acts as a natural carbon store.
The German scheme will support measures for the permanent and extensive rewetting of peatlands and for the subsequent agricultural and forestry use of peatlands at elevated water levels. The program will covers costs for preparatory advisory services, investments for the implementation phase, compensation for economic damage resulting from the rewetting and aid to establish paludicultures, systems which enable farming and agriculture at higher water tables on wet peatlands.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, said:
“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. The scheme that we approved today sets important incentives to develop new, sustainable value chains while taking all relevant stakeholders on board.”
The Czech aid scheme is designed to support the production of sustainable biomethane, to be used in transport, heating and industry. The program will support new capacity in both newly-built biomethane stations and existing biogas stations that are converted into biomethane stations. The scheme will be open to biomethane producers holding a gas production licence in the Czechia, and is anticipated to benefit mostly small and medium-sized farms.
The program is set to run until the end of 2030, and expected to support installations with a total output of 350 million standard cubic meters of sustainable biomethane.
The Commission’s approval of the Czech aid scheme was made under the new Clean Industrial Deal State Aid Framework (CISAF), designed to enable Member States to provide support for goals including clean energy development, industrial decarbonization and clean technology.
Ribera said:
“With this €3.7 billion scheme Czechia will boost the EU’s production of sustainable biomethane that will be used for transport and heating. It will also help Czechia meet its emissions reduction target. The measure will contribute to a cleaner, more secure and more resilient energy mix, while preserving a level playing field and minimising potential distortions of competition.”