The European Commission on Tuesday approved the two buy-out schemes worth €1.47 billion the government proposed last year to buy out especially polluting farms that aim to cut the country’s nitrogen emissions in line with EU commitments.
After years of grappling with a rampant nitrogen crisis, the government proposed a plan in March last year that would have it purchase and terminate around 3,000 main polluting industrial and agricultural companies – effectively ensuring farms with exceptionally high nitrogen emissions close up shop in exchange for money.
The government’s proposed “aid brings about positive effects that outweigh any potential distortion of competition and trade in the EU,” according to a statement from the European Commission issued on Monday, clearing doubts about their compatibility with EU subsidy rules after months of stalling.
“The €1.47 billion Dutch schemes we approved today will facilitate the voluntary closure of livestock farming sites with substantive nitrogen deposition on nature conservation areas,” EU Competition Commissioner Margrethe Vestager added.
“The schemes will improve the environmental conditions in those areas and promote a more sustainable and environmentally friendly production in the livestock sector, without unduly distorting competition,” Vestager said, referring to the main aim of the schemes: helping the country meet its emission targets.
Farmers will be compensated as much as 120% in certain conditions to soften the fallout of their loss of production capacity.
The Commission’s approval comes weeks earlier than thought, as an agreement between Brussels and The Hague was initially expected by the end of May.
In the Netherlands, the government’s plans have stirred up debate in political circles and civil society, with many farmers being disgruntled with the government’s handling of the crisis. Most recently, the farmers’ protest party BoerBurgerBeweging (BBB) emerged as the landslide winner in the country’s provincial elections in March.
(Benedikt Stöckl | EURACTIV.com, Julia Dahm I EURACTIV.de)
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