Lisbon, March 30, 2026 (Lusa) - Portugal's Prime Minister, Luís Montenegro, stated on Monday that a €250 million European state aid package for the forestry sector will make the country more resilient and better prepared for the future.
The head of government described this European assistance to restore forests as good news in a post on his official X account.
"Support to rebuild our common heritage and make it even more resilient and ready for the future! Portugal is Calling. For you. For everyone," he said.
The European Commission approved the €250 million state aid package for Portugal's forestry sector on Friday to reforest affected areas and compensate landowners. This scheme, which uses direct grants, remains valid until 31 December 2029.
Brussels confirmed that the regime will support investments to restore forests following natural disasters, severe weather, or catastrophic events, aligning with Portugal's Strategic Plan for the Common Agricultural Policy.
The initiative compensates landowners for income losses resulting from the reforestation of agricultural and non-agricultural land.
The government requested the measure in March 2025 to enable reforestation regardless of specific disasters like storms or fires.
The plan involves direct grants in the form of fixed premiums paid over 15 to 20 years to incentivise new forestry investment and offset loss of earnings.
Support includes reforestation premiums for owners of agricultural and non-agricultural land who cease farming or commit to maintaining new forest areas. It provides restoration premiums for those recovering forest potential after fires, storms, or other extreme situations, according to Brussels.
The Ministry of Agriculture and Marine Affairs said in a statement that the approved regime covers measures related to the afforestation of land and the restoration of forest potential after natural disasters.
The European Agricultural Fund for Rural Development is co-financing the scheme with up to €21.9 million as part of Portugal’s Strategic Plan for the Common Agricultural Policy.
This multi-year measure will stay in effect until 31 December 2029. Approval follows heavy pressure on Portuguese forests after severe storms hit the country in late January and February. Extreme winds, heavy rain, and flooding caused significant tree loss, landslides, and damage across vast rural areas.
FM/RYOL // AYLS
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